H.I.G. Capital has acquired Salary.com and a portfolio of additional compensation products from IBM. The management team of Salary.com and Prudential Capital Group were co-investors in this transaction.
Salary.com is a provider of employee compensation information and software that is used by its customers to find and analyze data about employee compensation and provides a platform for managing the daily workflow of employees. The business is led by Kent Plunkett, CEO and founder, and is headquartered near Boston in Wellesley, MA (www.salary.com).
“Compensation is complex, and for today’s employers to be successful, they need the tools and data that enable them to simplify the connections between people and pay,” said Mr. Plunkett.
Founded in 1999, Salary.com grew rapidly to become one of the most widely recognized sources for reliable information about employer-reported pay levels and compensation-related best practices, trends and policies. Following its IPO in 2007, Salary.com was acquired by Kenexa in 2010, and IBM acquired Kenexa in 2012.
H.I.G. Capital specializes in providing capital to small and medium-sized companies and invests in management-led buyouts and recapitalizations of manufacturing or service businesses. H.I.G. has more than $19 billion of capital under management. The firm was founded in 1993 and is based in Miami with additional offices in Atlanta, Boston, Chicago, Dallas, New York, San Francisco, London, Hamburg, Madrid, Milan, Paris, and Rio de Janeiro (www.higcapital.com).
“We are excited to have the opportunity to invest in Salary.com and work with Kent Plunkett and his team as they pursue their goals of both enhancing the company’s current product offerings and developing new products and services that help consumers and customers make well-informed, data-based compensation decisions,” said William Nolan, a managing director at H.I.G.
According to H.I.G., Salary.com is the most widely recognized source for employer-reported compensation data used to make employee compensation decisions. “We believe as a standalone, focused business with the resources to grow and expand the product offering, Salary.com is capable of furthering its leading market position and compelling potential customers to select its solutions over competitive offerings or continuing to utilize in-house options,” said Todd Ofenloch, a managing director at H.I.G.
Moorgate Partners, a New York-based investment bank (www.moorgatepartners.com), and Stifel Nicolaus (www.stifel.com), were the financial advisors to H.I.G. and Paul Hastings (www.paulhastings.com) was legal advisor.
© 2016 PEPD • Private Equity’s Leading News Magazine • 2-24-16