DALLAS, Nov. 20, 2017 /PRNewswire/ -- Global
alternative asset manager, The Carlyle Group (NASDAQ: CG), today
announced that it has agreed to acquire BenefitMall, a provider of
employee benefits and payroll services to small and medium sized
businesses across the U.S., from an investor group led by Austin
Ventures. The transaction is subject to customary conditions and is
expected to close by year-end. Financial terms were not
disclosed.
Carlyle Managing Director Jim
Burr said, "BenefitMall is an established player with
significant growth potential. Through capital investment, an
expanded salesforce, and Carlyle's industry experience and network,
we believe BenefitMall can expand and take significant market share
as the demand for integrated benefits, payroll and related products
and services continues to grow within an increasingly complex
regulatory environment. We look forward to supporting BenefitMall
and working with the entire talented management team."
Austin Ventures General Partner Joe Aragona said, "It has been a
pleasure working with the BenefitMall team. As we close this
partnership for a second time, we are confident that The Carlyle
Group combined with BenefitMall will create the perfect partnership
to promote continued growth and success as a significant player in
the employee benefits and payroll market for SMBs."
BenefitMall CEO Bernard DiFiore
and President Scott Kirksey said,
"Carlyle is the right partner to help take BenefitMall to the next
level of success. We have enjoyed working with Austin Ventures and
appreciate their support these past five years."
Founded in 1979, BenefitMall is the largest national General
Agency and the second-largest privately-owned payroll services firm
in the U.S., serving 200,000 small and medium-sized businesses, and
partnering with a network of 20,000 brokers and CPAs.
Equity for this investment will come from Carlyle Global
Financial Services Partners II, a $1
billion fund that invests in financial service firms
globally. Carlyle's financial services team has extensive
experience in the insurance services industry, including
investments in AA Ireland, Barbon Insurance Group, Edgewood
Partners Insurance Center (EPIC), JenCap Insurance Solutions and
PIB Limited.
Carlyle advisors: Sandler O'Neill + Partners, L.P. – financial;
Wachtell, Lipton, Rosen & Katz – legal; PricewaterhouseCoopers
– accounting and tax.
About BenefitMall
Headquartered in Dallas,
BenefitMall partners with a network of 20,000 Brokers and CPAs to
deliver employee benefits and payroll services to more than 200,000
small and medium-sized businesses. By combining payroll and
benefits, BenefitMall empowers Trusted Advisors to develop the best
employee programs while maintaining compliance with government
regulations and Health Care Reform. BenefitMall, the largest
national General Agency merged with the second largest privately
held payroll company, CompuPay. BenefitMall also operates
HealthCareExchange.com, the leading online community for
information regarding the Patient Protection and Affordable Care
Act. More information is available at www.benefitmall.com.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset
manager with $174 billion of assets
under management across 306 investment vehicles as of September 30, 2017. Carlyle's purpose is to
invest wisely and create value on behalf of its investors, many of
whom are public pensions. Carlyle invests across four segments –
Corporate Private Equity, Real Assets, Global Market Strategies and
Investment Solutions – in Africa,
Asia, Australia, Europe, the Middle
East, North America and
South America. Carlyle has
expertise in various industries, including: aerospace, defense
& government services, consumer & retail, energy &
power, financial services, healthcare, industrial, infrastructure,
real estate, technology & business services, telecommunications
& media and transportation. The Carlyle Group employs more than
1,550 people in 31 offices across six continents.
Web: www.carlyle.com
Videos: http://www.youtube.com/onecarlyle
Tweets: http://www.twitter.com/onecarlyle
Podcasts:
http://www.carlyle.com/about-carlyle/market-commentary
About Austin Ventures
Austin Ventures (AV) has worked with talented entrepreneurs to
build valuable companies for over 30 years in the technology,
business services and industrial markets. With $3.9 billion of capital, AV is one of the most
established venture capital firms in the nation. AV invests in
early stage and middle market companies with a geographic focus on
Texas.
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SOURCE BenefitMall