Willis Stein has invested $20 million growth capital in CompuPay. Willis Stein acquired the company in 2004, building it with 13 add-on deals.
CompuPay, Inc (www.compupay.com), one of the nation’s leading providers of payroll, tax filing and HR-related services, today announced that it has received an additional $20 million in growth capital from its majority shareholder, Willis Stein & Partners, a Chicago-based investment firm. Since 1989, Willis Stein has invested more than $3 billion in growth-oriented portfolio companies such as CompuPay.
Despite the broad economic challenges that have led to declining results among other industry players, CompuPay has continued to achieve solid growth in its service revenue and client base. The company’s target market of small to mid-size companies are increasingly choosing to outsource the processing of their payroll as a way to streamline business processes, improve productivity and reduce cost. According to a recent Harris Interactive survey, 84% of accountants said they prefer that their clients outsource their payroll rather than handling these functions in-house. CompuPay’s suite of market-leading products and culture of “extreme” service are attracting an increasing share of this market.
“We see tremendous opportunity for continued growth for CompuPay as more and more businesses of all sizes choose to outsource their payrolls for greater efficiency and productivity,” stated Charlie Lathrop, chairman, CEO and president of CompuPay. “Our organization is very excited by Willis Stein’s strong endorsement of our strategy and our team. This additional capital investment will be used to continue to accelerate our growth through the expansion of our sales force in new and existing markets and the strategic acquisition of other payroll providers that match our unwavering commitment to service and mirror our client profile.”
Having made several significant product development releases over the past two years, CompuPay will also deploy capital to continue to enhance its payroll and other HR services offerings, in particular its online products targeted to micro, small and mid-size businesses. The company has received a number of industry accolades for its service offerings and is looking to enhance its product leadership.
According to Chris Boehm, Managing Director at Willis Stein, “CompuPay continues to create substantial value as it expands its market share and strengthens its position as one of the nation’s leading providers of payroll and other outsourced HR solutions. We believe that CompuPay is very well-positioned for sustained long-term growth and strong profitability and look forward to continuing to support Charlie and his team in achieving their vision.”
CompuPay, Inc. was founded in 1980 and today is the second largest privately held payroll company in the United States and fourth largest overall. Its growing network of local offices processes payroll for tens of thousands of companies ranging in size from one to over 5,000 employees in all 50 states. The company offers payroll and employer-related services such as workers’ compensation insurance, employee benefits, retirement plans and Section 125 and 132 plans to clients seeking highly flexible, innovative solutions to meet their growing business needs.
About Willis Stein
Willis Stein & Partners is a Chicago-based private equity firm that invests in the specialized business services, consumer services and education sectors of the economy. The firm has invested $3 billion in 50 portfolio companies and worked closely with the management teams of those businesses to complete more than 200 add-on acquisitions and raise more than $4 billion in debt capital to drive their growth.