VSS Capital Partners has sold Tax Credit Co. to Experian. No financial terms were disclosed. Proskauer Rose LLP advised TCC and VSS on the transaction. TCC is a provider of tax incentive, employment verification and human resource technology-enabled services.
NEW YORK – June 16, 2021 – VSS Capital Partners (“VSS”), a private investment firm investing in the business services, healthcare, information, and education industries, announced that it sold Tax Credit Co. (“TCC” or the “Company”), a national provider of tax incentive, employment verification and human resource technology-enabled services, to Experian. The acquisition of TCC supports Experian’s newly formed Employer Services business.
Since investing in TCC in 2012, VSS has been a supportive strategic partner to the Company’s management team, while helping management pivot the business’ focus on high-growth service areas, bolstering operations and investing in technology. VSS also played a key role in identifying and executing transformative add-on acquisitions to grow the TCC platform.
“TCC is an outstanding business with innovative technology and high-touch customer service that has allowed it to develop strong client relationships with many of the largest companies across a broad range of industries,” said Jeffrey Stevenson, Managing Partner of VSS. “We enjoyed partnering with CEO Brandon Edwards and his talented team who shared our vision for innovating and building TCC into one of the fastest-growing players in the tax credits and incentives, employment and income verification services sector.” TCC generated impressive top-line revenue and EBITDA growth during VSS’s investment period.
Add-on acquisitions included Incentives Advisors (2013), a Phoenix-based nationwide government incentives technology and services provider that expanded TCC’s capabilities in the Work Opportunity Tax Credit space, and uConfirm (2019), a leading independent national provider of employment verification (“VOE”) technology-enabled services.
TCC became a leader in tax credit services by using proprietary processes, software and expertise to assist the most respected national employers in identifying valuable federal and state tax credits. TCC has expertise in Work Opportunity Tax Credit (“WOTC”) incentives, federal and state research and development tax credits, state enterprise zone and economic development incentives, and other tax incentive programs nationwide.
“TCC takes pride in being a small company that does big things and we thank VSS for the partnership,” said Edwards, adding, “Now, we will take our WOTC, VOE, R&D, ERC, and Fed/State Incentives programs to the next level, with tremendous reach and relevance that will make a substantial impact on the industry.”
“We wish TCC and the management team continued success, as increasingly companies of all sizes seek to outsource their employment and income verification tasks and maximize their tax credits while minimizing disruption to their business,” said Julen Uriguen, Senior Associate at VSS.
VSS brings significant experience investing in information services and Human Capital Management companies, having successfully developed and exited Cast & Crew, a payroll processing and related services company for the entertainment industry; TMP Worldwide, a technology-enabled talent acquisition company; System One, a staffing solutions company for the nuclear energy, engineering, IT, scientific, and commercial sectors; Thomsons Online Benefits, a SaaS-based benefits and pension information and services, workflow, and reporting solution company; and SHL, a pre-employment testing and assessment solutions company.
Proskauer Rose LLP advised TCC and VSS on the transaction. The transaction closed in April of 2021.
VSS is a private investment firm that invests in the business services, healthcare, information, and education industries. Headquartered in New York, VSS provides capital for growth financing, recapitalizations, strategic acquisitions, and buyouts to lower middle market companies and management teams with the goal of building companies organically as well as through a focused add-on acquisition program. VSS makes privately negotiated investments across the capital structure and invests in situations requiring control or non-control equity, mezzanine securities, and structured equity securities. VSS has over three decades of experience, made investments in 91 portfolio companies, with over 370 add-on acquisitions, and manages $3.5 billion in aggregate committed capital across 7 funds. For more information, please visit: www.vss.com
Founded in 1996, TCC delivers tax incentive and human resources technology-enabled services, specializing in large-scale solutions for the Work Opportunity Tax Credit, employment and income verification, research & development tax credits, sales and use tax incentives and other federal and state tax incentives. TCC has been in business for over 25 years, serving over 1,000 clients. For more information, please visit: www.taxcreditco.com