Primus Capital has made a growth capital investment in S&W Payroll Services (DBA Netchex Online), a provider of cloud-based payroll, human resources, and benefits software.
Netchex’s cloud-based services include payroll and tax administration, hiring and onboarding (new employee setup), labor cost tracking and benefit management. The company provides single sign-on access to a unified database across all of its applications. Netchex customers include more than 2,500 employers located across the US but with a concentration in Southeast. The company is headquartered near New Orleans in Mandeville, LA with additional offices in Baton Rouge, Atlanta, Dallas, and Jackson, MS. Netchex was founded in 2003 by Will Boudreaux, CEO, and Stuart Ethridge, President of Sales (www.netchexonline.com).
“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.”
Primus invests in companies within the healthcare, software, technology‐enabled services, and education industries. Transaction types include management-led buyouts, control and non-control recapitalizations and growth equity investments. The firm was founded in 1983 and is investing through Primus Capital Fund VII, a $353 million fund closed in 2013. Primus is based in Cleveland (www.primuscapital.com).
“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,” said Aaron Davis, a Principal of Primus. “This is a natural partnership given Primus’ focus on the human capital management industry and our history of helping growth stage companies realize their potential.”
Seattle-based Cascadia Capital (www.cascadiacapital.com) was the financial advisor to Netchex on this transaction.
Published April 1, 2016 by Private Equity Professional, private equity’s leading news magazine. Copyright © 2016 Sun Business Media, LLC. All rights reserved.
