B2B Payments

Asure Merger Consolidates Payroll Market

The U.S. payroll services market saw consolidation this week with Asure Software announcing Tuesday (July 3) that it acquired USA Payroll.

A press release said USA Payroll is a reseller of various payroll and human resources solutions, including Asure’s HRIS platform, Evolution. The tool helps businesses mitigate payroll compliance risk. Furthermore, USA Payroll provides customers with payroll and tax services, timekeeping, third-party administration and other back-office services.

Financial terms of the acquisition were not disclosed, but Asure said it has revised its 2018 financial outlook. For the fiscal year, the company said it expects revenues to hit between $93 and $96 million, up from earlier forecasts of between $90 and $93 million.

“We continue to capitalize on the multimillion-dollar reseller consolidation opportunity,” said Asure CEO Pat Goepel in a statement. “The addition of USA Payroll not only expands our national reach, but also enables us to provide clients with access to greater breadth and depth of solutions. Asure has a significant opportunity to help educate our clients in modern workforce technology, adding value to many areas of their business.”

With regards to the revised fiscal year outlook, Goepel added that the acquisition “is in line with our stated objective of scaling our business both organically and inorganically through strategic acquisitions.”

He added that the company continues to focus on surpassing $100 million in revenue.

“We built our company on the quality of service that we’re able to offer our clients,” said USA Payroll president Ralph Fornuto in another statement. “That’s what separates us from our competition. We are confident that the same values and services will continue with Asure Software. With the addition of workforce and workspace solutions, we will continue to set our clients up for success.”

Earlier this year, Asure announced it reached an agreement to acquire Wells Fargo‘s Business Payroll Services unit, Evolution HCM, and its customer portfolio.

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