Netchex (“Netchex” or the “Company”), a leading provider of cloud-based human capital management and payroll software, announced that it has been acquired by GrowthCurve Capital (“GrowthCurve”). GrowthCurve is acquiring the business from affiliates of Primus Capital (“Primus”). Terms of the transaction were not disclosed.
Founded in 2003 by CEO Will Boudreaux and co-founder Stuart Ethridge, Netchex is a leading provider of human capital management (“HCM”) and payroll software solutions to the small to medium enterprise (“SME”) market. Headquartered in Covington, Louisiana, Netchex provides an integrated suite of cloud-based HCM products including core HR, payroll, time & attendance management, benefits administration, talent management, and reporting & analytics, among other solutions. The Company serves over 6,000 businesses across a range of industries nationwide, with the core mission of making HR, benefits, and payroll easy through its differentiated technology platform and strong commitment to client service. Among other industry accolades, Netchex has been included in G2 Crowd’s list of Top Performers.
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GrowthCurve Capital is a private equity firm focused on building world-class businesses by leveraging data, analytics, and machine learning, combined with a comprehensive approach to human capital, to accelerate growth and drive value creation. GrowthCurve’s investment will enable Netchex to further accelerate its AI strategy, including development of new data analytics products; support the launch of new business lines; and expand into new markets.
“Netchex is one of the fastest growing HCM technology companies in the industry, and we’re proud of the significant differentiation and strong brand that we have developed in the marketplace,” said Will Boudreaux, Founder and CEO of Netchex. “GrowthCurve is the ideal partner to support the next phase of Netchex’s growth, and their expertise in AI, human capital, and scaling data-centric companies will provide a strong foundation for our vision to make HCM easy, intuitive, and a core value driver for the SME market. We also thank Primus Capital for their partnership and support while they were investors in Netchex.”
Matthew Popper, Head of Technology and Information Services Investing at GrowthCurve, said, “Netchex is a leader in the fast-growing HCM and payroll software industry, with an impressive solution that provides seamless end-to-end functionality for the end user. We look forward to partnering with Will and the rest of the management team to accelerate Netchex’s growth, including applying GrowthCurve’s functional capabilities at the intersection of data analytics and human capital to build on the Company’s culture of innovation and expand the platform’s capabilities.”
Sim Allan, Vice President at GrowthCurve, added, “Netchex is incredibly well positioned to capture the large market opportunity for leveraging software, data analytics, and AI to help SMEs efficiently and comprehensively manage talent. We are excited to be partnering with Will and the entrepreneurial team at Netchex to continue delivering innovative HR solutions that solve our clients’ most critical talent-related needs.”
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“It has been an honor to partner with a great company like Netchex and a management team led by Will Boudreaux. The company executed numerous growth initiatives while Primus Capital was an investor and carved out a leadership position in the SaaS payroll market,” said Aaron Davis, Managing Director at Primus Capital. “The future is bright for Netchex and GrowthCurve is a fantastic partner to further build on the success to date.”
In addition to representatives from GrowthCurve, Ted Gaty, former Chief Product & Technology Officer of Paylocity, will join the Board of Directors of Netchex, helping drive key strategic priorities for the business.
Lincoln International served as financial advisor and Goodwin Procter served as legal counsel to Netchex. Jefferies LLC served as exclusive financial advisor and Davis Polk & Wardwell served as legal counsel to GrowthCurve.
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