New funding helps accelerate development and expansion of software and services to HRO service providers and their clients
SOUTHBOROUGH, MA and BOSTON, MA – April 24, 2017 – PrismHR, the leading provider of software for human resource outsourcing (HRO) service providers, today announced a majority investment from global growth equity investor Summit Partners. This transaction includes new funding that will help propel the delivery of additional software and services to the more than 340 HRO organizations that use PrismHR software today, helping them grow and thrive.
With over 20 years of experience in the field of human resources, PrismHR provides comprehensive software solutions for professional employer organizations (PEOs) and administrative service organizations (ASOs). PrismHR helps those HR organizations save time, improve productivity, mitigate risk and attract, win and retain business more effectively than any other available solution.
“As the human resources function increases in complexity, the demand from small and medium-sized businesses for outsourced HR solutions continues to grow,” said Gary Noke, President and CEO of PrismHR. “PrismHR offers one of the most extensive and flexible platforms available to HROs. Our partnership with Summit will enable us to accelerate the development and expansion of this platform to meet the growing demands of our clients and their end customers.”
PrismHR has realized strong growth since Accel-KKR made an initial equity investment in 2014. The company’s achievements include:
- Increased total revenue and headcount by nearly 3x
- Grew annual revenue 59% in 2016
- Released the next generation of the PrismHR Platform – the HR outsourcing solution for Payroll, Benefits, HR and more
- Expanded the platform with applicant tracking, mobile capabilities, next generation benefits enrollment, integrated time support and enhanced extensibility
- Increased the number of HR Service Providers using PrismHR software by 94%, which led to 50% growth in worksite employees
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“PrismHR’s recent growth has been remarkable, and we believe the company is well positioned to continue this impressive trend,” said Scott Collins, Managing Director at Summit Partners who will join the PrismHR board of directors. “The company’s cloud-based software allows HROs to service their small and medium-sized customers with a more seamless, sophisticated solution – and positions PrismHR to capitalize on the tremendous opportunity in human resources technology and services.”
“This new capital, combined with Summit Partners’ extensive resources and experience, will help us to execute on our vision faster than ever,” added Noke. “We can now build out the next phase of our corporate strategy and products, allowing our clients to take full advantage of the scale, resources and depth of the PrismHR platform – and to accelerate their own growth in the process.”
In addition to Mr. Collins, Summit Partners Vice President, Zachary Gut will join the PrismHR Board of Directors. Existing investor Accel-KKR invested alongside Summit Partners in the transaction and Greg Williams, Managing Director, will remain on the PrismHR board. PrismHR founder Fred Davison continues to be a significant shareholder in the Company.
PrismHR creates exceptional software and services, empowering human resource outsourcing service providers such as Professional Employer Organizations (PEOs) and Administrative Service Organizations (ASOs) to deliver world-class HR, benefits, and payroll to small and medium-sized businesses. PrismHR powers more than 80,000 organizations, delivering payroll, benefits, and HR to greater than 2 million worksite employees and processing over $55 billion in payroll each year. For more information, visit www.prismhr.com.
About Summit Partners
Founded in 1984, Summit Partners is a global alternative investment firm that is currently investing more than $9.5 billion into growth equity, fixed income and public equity opportunities. Summit invests across growth sectors of the global economy and has invested in more than 440 companies in technology, healthcare, life sciences and other growth industries. These companies have completed more than 140 public equity offerings, and more than 170 have been acquired through strategic mergers and sales. Notable software and SaaS companies financed by Summit include Acturis, Avast, AvePoint, Ascentis, Clearwater Analytics, Darktrace, Fuze, Gainsight, Hyperion Solutions, Infor, McAfee, Perforce, RiskIQ, Telerik, TSheets, Uber, WebEx and Visier. Summit maintains offices in North America and Europe, and invests in companies around the world. For more information, visit www.summitpartners.com or follow on Twitter at @SummitPartners.
Accel-KKR is a technology-focused investment firm with $4.0 billion in capital commitments to its current funds. The firm invests in software and IT enabled businesses well positioned for top line and bottom-line growth. At the core of Accel-KKR’s investment strategy is a commitment to developing strong partnerships with the management teams of its portfolio companies and a focus on building value through significant resources available through the Accel-KKR network. Accel-KKR focuses on middle-market companies and provides a broad range of capital solutions from minority-growth investments to buyouts, recapitalizations, divisional carve-outs and going-private transactions. The firm has offices in Menlo Park, Atlanta and London. For more information, please visit www.accel-kkr.com.
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