Rochester, New York-based Benefit Resource Inc, a third-party administrator of pre-tax benefits and COBRA services, has secured an undisclosed amount of funding. The investor was CIP Capital.
August 19, 2019 | Rochester, NY – Benefit Resource Inc. (BRI), a leading third-party administrator of pre-tax benefits (including FSA, HSA, HRA and commuter benefit plan programs) and COBRA services, today announced the completion of a strategic investment by CIP Capital, a private equity firm focused on platform investments in growth-oriented, middle-market companies across the Business Information and Tech-Enabled Services sectors. BRI utilizes a proprietary suite of technology solutions coupled with a high-touch service model to deliver a superior offering to its over 3,500 clients and their employees. BRI serves clients of all sizes nationwide with a focus on mid-market employers. Founded in 1993, BRI is headquartered in Rochester, NY with a secondary office in New York City.
“Our partnership with CIP Capital allows us to expand on our long track record of success and ensures that we continue to provide our partners, clients and their employees with leading technology and service solutions,” said Tony DiBarnaba, co-founder of BRI. “I am very excited for BRI to begin this next chapter with CIP Capital. BRI has always taken pride in our technology and our people. This strategic investment with CIP Capital just further solidifies that commitment.”
As part of the transaction, co-founders Tony DiBarnaba and Thomas Guiler have transitioned to advisory roles and Jason Hall, current COO, has been named CEO. “Jason has played a crucial role in BRI’s growth and strategic direction over the past five years and Tony and I look forward to watching him lead our highly-skilled and talented team into the future,” Tom added.
“I am extremely excited about and grateful for the significant opportunity that is in front of me and the team. With the strength of our proprietary technology and our people, BRI is uniquely positioned to offer clients and their employees with simple, cost-saving solutions that create peace of mind with the regulations and complexities inherent in providing employees with consumer-directed benefit programs. We are thrilled to be partnering with CIP Capital as they are aligned with our vision for the future, which includes expansion into new markets while maintaining the exceptional service levels that have been the hallmark of BRI for the last 26 years,” said Jason.
“BRI has developed a unique and highly differentiated position in the consumer-directed benefits industry by leveraging its leading technology and service capabilities to create a strong value proposition for its clients and their employees. The company is well-positioned to help employers manage the compliance challenges around employee benefits and drive material savings for its participants as employee out-of-pocket healthcare costs continue to rise,” said Bobby Kelly, Partner at CIP Capital. “We look forward to partnering with Jason and the rest of the BRI team to further expand their market presence and accelerate investments in their solution offering.” BRI represents CIP Capital’s fifth investment in the human capital management industry as part of a core focus on the benefits administration market.
Raymond James & Associates, Inc. served as exclusive financial advisor to BRI and Nixon Peabody LLP and Boylan Code served as legal advisors to BRI. Willkie Farr and Gallagher LLP served as legal advisor to CIP Capital.
About Benefit Resource:
Benefit Resource Inc. administers pre-tax benefit plans and COBRA services nationwide. Unlike payroll or human resource companies, BRI focuses and bring expertise to the administration of benefit accounts, COBRA and direct billing administration services. These plans allow employers and employees to set aside dollars to pay for common expenses associated with medical care, dependent care, mass transit, and parking costs. BRI, founded in Rochester, New York in 1993, is a leader in technology enabled solutions for tax-free employee benefit plans that streamline plan administration, reduce overhead costs for employers and improve convenience and security for employees. For more information please visit: www.benefitresource.com.
About CIP Capital:
CIP Capital is a New York-based private equity firm focused on investing in growth-oriented, middle-market companies across the Business Information and Technology-Enabled Services sectors in North America. The fund seeks to invest in proven, profitable businesses that provide their customer bases with critical information, data-driven insights, and value-added outsourced services. CIP targets investments in sectors including tech-enabled business services, data-driven marketing services, human capital management and knowledge services. For more information please visit: www.cip-capital.com.