Paychex acquires supplier company
The Cleveland, Ohio-based company offers customisable solutions to the temporary staffing industry, including payroll funding and outsourcing services, which include payroll, invoicing, and tax preparation.
“The staffing outsourcing business is a growing industry that serves many small and mid-sized firms, which is a perfect fit for Paychex,” says Martin Mucci, Paychex president and CEO. “We are excited about Advance Partners joining the Paychex family. And, given Paychex’s extensive product suite, financial strength, and access to capital, we can help expand Advance Partners’ product offering and accelerate client growth.”
Industry data shows there are more than 3m temporary staffing employees in the United States, and approximately 10,000 small and mid-sized staffing businesses that support this employee population.
“We believe the temporary staffing business is going to continue to grow, due in part to ever-increasing government regulation, including the Affordable Care Act and newly proposed overtime rules. Paychex is uniquely positioned to bring our regulatory expertise to staffing firms,” says Mucci.
Advance Partners’ staffing firm clients work with more than 7,500 businesses. Those clients hire and process approximately 200,000 temporary positions annually.
“This announcement marks a great day for the clients of Advance Partners,” says Joel Adelman, Advance Partners founder and CEO. “Our mission has always been to help staffing firms grow. Now, as part of the Paychex family, we can leverage the capital, technology, and insurance resources of a leading provider of human capital management solutions to offer our clients a more complete suite of services to further accelerate their growth. The entire senior team at Advance is thrilled with this opportunity and looks forward to continue working with our talented associates here in Cleveland, Ohio.”
Founded in 1998, Advance Partners has approximately 130 employees. All will be offered the opportunity to become Paychex employees.
The transaction was structured as an acquisition of substantially all of the assets of Advance Payroll Funding, Ltd., the operating company, and Advance Temporary Help Services, Inc., its non-operating parent company, by a wholly owned subsidiary of Paychex.
Terms of the acquisition were not disclosed.