HR Outsourcing Provider CoAdvantage to be Acquired by Aquiline Capital Partners from Morgan Stanley Capital Partners
July 24 2019 - 8:00AM
Business Wire
CoAdvantage, one of the nation’s top privately held professional
employer organizations (PEO) and a leading national provider of
strategic human resource (HR) solutions for small to mid-sized
companies, announced today a definitive agreement to be acquired by
Aquiline Capital Partners, a private equity firm investing in
financial services and technology. CoAdvantage is being acquired
from investment funds managed by Morgan Stanley Capital Partners
(MSCP), which have owned the company since 2015. No financial terms
of the transaction were disclosed.
Founded in 1990, CoAdvantage offers a comprehensive HR
outsourcing offering for small and medium sized businesses. With
proprietary technology and client-dedicated support specialists,
CoAdvantage assumes the risk, administration, and compliance
associated with a range of functions including payroll, tax
filings, healthcare and ancillary benefits, and workers
compensation. With its strong sales momentum and integration of
recent acquisitions, the company now serves more than 4,500
clients, and plans to continue its strategy during its partnership
with Aquiline.
“Aquiline Capital Partners has expertise in the insurance,
benefits and Human Resources administration industries that will be
valuable to our business as we continue executing our growth
strategy while maintaining the company’s independence,” stated
Clint Burgess, President & CEO of CoAdvantage. “CoAdvantage has
benefitted immensely from Morgan Stanley Capital Partners’ support
over the years, and they have helped to position our company for
ongoing success. We sincerely thank them for their partnership in
strengthening the business.”
“Outsourcing of human resources administration and risk
management is a growing trend, particularly in the small and
mid-sized business segment,” said Jeff Greenberg, Chairman and
Chief Executive Officer of Aquiline. “This is driving strong demand
for professional employer organization services and CoAdvantage is
well-positioned given its scale and comprehensive product offering.
We look forward to supporting CoAdvantage and its experienced
management team, led by Clint Burgess, as they continue to scale
the business through organic growth and acquisitions.”
CoAdvantage has become one of the largest private PEOs in North
America through organic growth and an established approach to
integrating acquisitions. Since 2015, the company completed three
acquisitions including Progressive Employer Management Services
Company in 2017, which significantly transformed its scale and
capabilities.
“Over the course of our investment period, CoAdvantage has
become a more profitable, and more highly regarded service provider
to the ~4,000 clients the company supports daily,” said Adam Shaw,
Managing Director and Head of Business Services at MSCP. “We are
pleased to have partnered with an exceptionally talented and deep
management team that has grown the company into a premier provider
of a comprehensive suite of outsourced services.”
The management team, led by Mr. Burgess, will remain in place
following completion of the transaction. Completion of the
transaction is subject to customary closing conditions, including
regulatory approvals.
Lazard Middle Market acted as financial advisor to CoAdvantage
on this transaction. Piper Jaffray & Co acted as financial
advisor to Aquiline and Willkie Farr & Gallagher LLP provided
legal counsel to Aquiline. Debevoise & Plimpton LLP served as
legal advisor to MSCP.
About CoAdvantage
Headquartered in Tampa, Florida, CoAdvantage, Inc. is a leader
in human resource solutions, providing Professional Employer
Organization (PEO) services to small and medium-sized businesses
nationwide. CoAdvantage serves 4,500 clients and 90,000 work site
employees across all 50 states, with the main offices in Florida,
Texas, California, New York, New Jersey, and Colorado. For more
information, visit: www.coadvantage.com.
About Aquiline Capital Partners LLC
Aquiline Capital Partners, founded in 2005, is a private equity
firm based in New York and London investing in businesses globally
across financial services and technology. For more information
about Aquiline, its investment professionals, and its portfolio
companies, please visit: www.aquiline.com.
About Morgan Stanley Capital Partners
Morgan Stanley Capital Partners, part of Morgan Stanley
Investment Management, is a leading middle-market private equity
platform that has invested capital in a broad spectrum of
industries for over three decades. Morgan Stanley Capital Partners
focuses on privately negotiated equity and equity-related
investments primarily in North America and seeks to create value in
portfolio companies primarily in a series of subsectors in the
business services, consumer, healthcare and industrials markets
with an emphasis on driving significant organic and acquisition
growth through an operationally focused approach. For further
information about Morgan Stanley Capital Partners, please visit:
www.morganstanley.com/im/capitalpartners.
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version on businesswire.com: https://www.businesswire.com/news/home/20190724005451/en/
Aquiline Capital Partners: Brunswick Group Alex Yankus /
Harry Mayfield 212-333-3810 AQUILINE@brunswickgroup.com Morgan
Stanley Capital Partners: Lauren Bellmare 212-761-5303
lauren.bellmare@morganstanley.com
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