Exclusive: HR software firm Namely gets acquired
Three providers of human resources software and services have become one, Axios has learned.
Why it matters: This comes against the backdrop of an ongoing U.S. labor shortage, despite strong monthly jobs growth.
Driving the news: Namely, a midmarket-focused company, has been acquired by a holding company that was created via the merger of PrismHR and Vensure Employer Services.
- Both PrismHR and VES are backed by private equity firm Stone Point Capital.
- Namely had raised over $200 million in venture capital funding from firms like Sequoia Capital, True Ventures and GGV Capital. This included a 2018 infusion at a $500 million valuation. All of the investors were bought out, and CEO Larry Dunivan is expected to step down.
Backstory: Namely had hired investment bank Jefferies to recapitalize the business, and entertained both raising Series F funding or selling directly to a private equity firm.
- PrismHR CEO Gary Noke says that the Namely brand was of particular interest, and that the focus on midmarket employers (250-2,000 workers) fills a gap for both PEO-focused PrismHR nor Vensure (a PEO itself).
By the numbers: The combined company has around 3,600 global employees, serving over three million employees at other organizations.
Look ahead: Expectations are that the combined company eventually will seek to go public.