Contractor Management Services (CMS) products and services are cloud-based and allow contracting companies to pay independent contractors as well as track, document and facilitate compliance with regulatory, legal and tax requirements associated with the use of independent contractors. CMS is based in Phoenix (www.ICMpower.com) (www.ictherightway.com).
“CMS provides essential solutions to a large and growing base of contracting companies and independent contractors across multiple end markets,” said Steven Kaplan, General Partner at Riverside Partners. “CMS’ technology-based approach is differentiated, and the company’s software directly addresses both the payment settlement requirements as well as the complex compliance needs of its clients.”
CMS was founded in 2001 by Dennis Roccaforte and he will continue to serve on the board of directors of the company and remains a significant owner. E. Patrick LaVoie will continue to run CMS as its Chief Executive Officer.
“We chose Riverside Partners because of their experience investing in and growing technology-based services companies,” said Mr. LaVoie. “We expect that our partnership with Riverside Partners will allow us to continue our innovation around the new “gig” economy, expand our technology-based service offerings and accelerate our growth while continuing to meet and exceed our customers’ needs.” Borrowed from the music industry, the word “gig” refers to flexible employment, contingent labor, and temporary labor.
“CMS’ software platform will enable it to scale very efficiently and we look forward to assisting the company in expanding its role as a leader and innovator in the space,” said Michelle Noon, Partner at Riverside Partners.
Riverside Partners invests in middle market healthcare and technology-oriented companies that have revenues from $20 million to $200 million and EBITDA’s from $5 million to $25 million. Riverside Partners is currently investing its fifth fund, Riverside Partners Fund V, LP, with $561 million of capital commitments. Riverside Partners has been very active of late having just closed (April 2015) an equity investment in R&D Altanova, a provider of services and products used to test integrated circuits. The firm was founded in 1989 and is based in Boston (www.riversidepartners.com).
© 2015 PEPD • Private Equity’s Leading News Magazine • 6-12-15