Netchex Online (“Netchex”), a leading provider of cloud-based payroll, HR and benefits software, announced today that it has received a substantial growth investment from Primus Capital (“Primus”), a private equity firm based in Cleveland, OH. Financial terms of the transaction were not disclosed.
Netchex offers a leading edge SaaS-based solution including robust tools for recruiting top talent, paperless onboarding, labor cost tracking and seamless management of benefits, in addition to base payroll and tax. The product provides single sign-on access to a unified database across all applications. Netchex was founded in 2003 by CEO, Will Boudreaux, and partner, Stuart Ethridge. Since then, the company has grown to service more than 2,500 employers across the United States, predominantly focused in the Southeast with offices in Mandeville, LA, Baton Rouge, LA, Atlanta, GA, Dallas, TX and Jackson, MS.
“Primus is the perfect partner for Netchex,” said Boudreaux. “They support our values and vision and bring tremendous expertise to our organization. Their track record of success in the technology-enabled services industries will be extremely valuable in accomplishing our business goals to be a leader in the Human Capital Management space.”
“As the competition for talent continues to accelerate and the regulatory environment gets more complex, employers increasingly desire integrated Human Capital Management systems,” said Jonathan Dick, Managing Director of Primus. “Netchex offers a complete solution including compliance with the Affordable Care Act to medium and small businesses that historically was only available for very large corporations. The Netchex management team has a vision and mission to empower employees as they are a company’s biggest asset. We are impressed with Netchex’s strong leadership and the company they have built.”
“We are very excited about Netchex’s continued growth prospects. As we conducted our due diligence, we were impressed by the business model, the market opportunity and breadth of the product offering, all of which position the company to grow at accelerated rates and build on its market position as an innovator,” added Aaron Davis, Principal of Primus. “This is a natural partnership given Primus’ focus on the Human Capital Management industry and our history of helping leading growth stage companies realize their potential.”
Boudreaux will continue in his role as CEO. Dick and Davis as well as Donald Taylor, Operating Partner of Primus, will join the board as directors.
Cascadia Capital served as financial advisor to Netchex on this transaction.
Netchex is a leading, web-based Human Capital Management platform offering single sign-on, integrated solutions for the complete employee lifecycle. Netchex’s software features hiring, onboarding, payroll, human resources, time management, benefits and reporting tools to control labor costs and enhance the employee experience. For more about Netchex, visit www.netchex.com
Primus is a growth-oriented private equity firm focused on investing in leading health care, software, and technology-enabled companies. We partner with exceptional management teams to accelerate growth, improve the operating performance, and increase the value of the companies in which we invest. The types of transactions we pursue include buyouts, control and minority recapitalizations, secondary share purchases and expansion financings. This flexible approach enables us to engage with business owners and design tailored investment structures to meet the particular needs of the transaction. For more about Primus, visit www.primuscapital.com