Coalesce-backed DecisionHR buys Minnesota PEO Paymasters
DecisionHR acquired Paymasters Inc., a Minnesota professional employer organization serving small and midsized employers across the Midwest.
By Amanda Ross · Deals Correspondent
· 2 min read
DecisionHR, a portfolio company of Coalesce Capital, has acquired Paymasters Inc., according to PE Hub. Financial terms of the transaction were not disclosed, limiting public read-through on valuation, financing structure or expected earnings contribution.
Paymasters is a Minnesota-based professional employer organization serving small and medium-sized employers across the Midwest, PE Hub reported. DecisionHR is headquartered in St. Petersburg, Florida, and provides professional employer organization and human resources outsourcing services.
The transaction brings together two businesses operating in outsourced employment administration. A professional employer organization typically supports client companies with employment-related functions, while human resources outsourcing providers handle selected HR processes for employers that do not manage every function internally.
PE Hub identified Peter Newman as DecisionHR’s chief executive. The report did not provide additional details on management changes, integration plans, financing sources or the sellers of Paymasters.
Coalesce Capital’s backing places the deal within the private equity market for business services, where payroll, HR administration and employer services are recurring needs for small and midsized companies. No financial metrics for DecisionHR or Paymasters were disclosed in the PE Hub report.
Deal details disclosed
- Buyer: DecisionHR, a Coalesce Capital portfolio company
- Target: Paymasters Inc.
- Target location: Minnesota
- Target market: small and medium-sized employers across the Midwest
- Buyer headquarters: St. Petersburg, Florida
- DecisionHR chief executive: Peter Newman
- Terms: not disclosed
The absence of disclosed terms means investors and competitors cannot assess the purchase multiple or the transaction’s scale relative to DecisionHR’s existing operations. PE Hub did not report whether the acquisition was funded with debt, equity or a combination of capital sources.
This story draws on original reporting from PE Hub.
