#USA #Coalesce Capital #HR Outsourcing #DecisionHR #New York and St. Petersburg

Coalesce Capital to Acquire Majority Stake in DecisionHR

Coalesce Capital, a private equity firm renowned for investing in businesses centered around human capital and technology, has officially signed an agreement to acquire a significant majority stake in DecisionHR, a leading provider of human resources outsourcing solutions across the United States. This strategic acquisition is poised to reshape the HR landscape by enhancing efficiency and offering comprehensive solutions to small and mid-sized enterprises.

Background on DecisionHR

Founded in 1996, DecisionHR operates as a Professional Employer Organization (PEO), delivering a range of essential HR services that encompass payroll and tax administration, workers' compensation management, risk assessment, and employee benefits administration. With a commitment to innovation, DecisionHR leverages technology to provide scalable solutions tailored to streamline operations for thousands of small- and mid-sized businesses (SMBs) across the nation. By ensuring compliance and helping clients control costs, DecisionHR effectively empowers these businesses to focus on their core operations.

The Acquisition's Potential

The partnership with Coalesce Capital is expected to inject fresh capital into DecisionHR, allowing the company to further expand its technological capabilities and human resources services. By investing in talent acquisition and potential strategic mergers or acquisitions, Coalesce aims to bolster DecisionHR's value proposition and extend its reach within the HR outsourcing market.

Peter Newman, CEO of DecisionHR, expressed his optimism about the acquisition, stating, "DecisionHR has established itself as a trusted partner for SMBs in need of scalable HR solutions. With Coalesce's expertise and experience in our sector, we anticipate a rapid acceleration of growth, which will translate into enhanced service delivery for our clients."

Stephanie Geveda, Coalesce Capital's Founder and Managing Partner, highlighted the driving force behind the acquisition: "In today’s market, businesses are focusing on their core operations and facing the growing complexity of human resource management. We have witnessed a marked increase in the demand for outsourced PEO solutions. Given this context, DecisionHR is ideally positioned to leverage this opportunity for growth and expansion."

A Win-Win Scenario

The transaction, set to close by the end of the year, is designed to ensure a seamless transition for DecisionHR. The existing management team will continue to lead the organization and will retain a tangible ownership stake alongside the current shareholders. This element ensures that the company's operational integrity and vision are preserved even as it pursues expansive growth strategies.

Austin Heiman, a Managing Director at Coalesce Capital, elaborated on their investment philosophy: "We believe in supporting professional services firms that enable businesses to grow at a faster pace. DecisionHR embodies this sentiment by offering mission-critical HR solutions that alleviate the administrative burdens faced by management teams, allowing them to direct their focus towards strategic initiatives. We are eager to support DecisionHR’s ambitions as a leader in the PEO sector."

The Dynamics of HR Outsourcing

The current trends in the HR outsourcing environment indicate a strong market reshaping, where many organizations are increasingly recognizing the value of partnering with PEOs to handle complex HR functions. As Coalesce and DecisionHR align their capabilities, the fusion is anticipated to produce innovative solutions and refine existing services, ultimately benefiting a wider array of clients.

Lazard provided exclusive financial advisory services, while Jones Day acted as the legal advisor for DecisionHR. Latham & Watkins served as legal counsel for Coalesce Capital throughout this acquisition process. Details regarding the financial terms remain undisclosed, though the deal is subject to regulatory reviews and typical closing conditions.

This acquisition marks an exciting chapter not just for Coalesce and DecisionHR, but also for the many SMBs that rely on effective HR management to drive their success in a highly competitive business landscape. For more information on DecisionHR, you can visit their website at www.decisionhr.com. Similarly, for insights on Coalesce Capital, check www.coalescecap.com.