Leading Managed HR Services Provider Grew 2.5x During Partnership with FFL
FFL Partners (“FFL”), a private equity firm focused on growth investments in Healthcare and Tech-Enabled Services businesses, announced that it has exited its investment in ProService (“ProService,” or “the Company”), a leading provider of bundled HR solutions. Financial terms of the private transaction were not disclosed.
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“On behalf of our entire team, we are grateful to FFL Partners for their collaborative approach to our partnership over the past six years”
Founded in 1994 and headquartered in Hawaii, ProService offers HR services including payroll, benefits, insurance, compliance, administrative and risk management services on a fully bundled basis. More than 3,000 employers with over 70,000 employees, partner with ProService to reduce their employment costs, compete for and retain the best talent, and ensure compliance in complex regulatory environments.
The partnership with FFL helped refine and strengthen the Company’s strategy of superior service, products, and technology specialized to local markets. This included testing its focused model in other markets, first with the opening of Obsidian HR in Denver, CO in 2019, then in the senior care and disability services markets with its investment in ProCare in 2021, and finally with its investment in AdvanStaff HR in Las Vegas, NV in 2022. Each of these businesses are experiencing strong growth by providing excellent service and bundled offerings that lower costs and save time for employers and employees. ProService grew by over 2.5x during FFL’s investment period, despite the challenges presented by the Covid pandemic.
“Our partnership with ProService delivered fantastic value to clients, employees, and all ProService stakeholders. We are pleased to have been able to help ProService grow their business in Hawaii, plus export their unique PEO model to other specialized markets around the country,” said Cas Schneller, Managing Partner at FFL Partners. “ProService is well positioned to pursue their next chapter of growth as the demand for outsourced HR services continues.”
“On behalf of our entire team, we are grateful to FFL Partners for their collaborative approach to our partnership over the past six years,” said Ben Godsey, CEO and President of ProService. “FFL helped us test, refine and expand our business to other markets. Their investment validates our client-focused business model, and FFL was instrumental in solutioning with us, so that we could support the Hawaii community during Covid. FFL was a great partner to me and our management team, and supported expanded employee ownership,” concludes Godsey.
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“Our investment in ProService highlights the benefits of our focus on HR Services and our hyperspecialized Sector Exploration and Expertise Development (“SEED”) process,” added Jonathon Bunt, Partner at FFL. “Ben and his team immediately stood out to us as differentiated operators in the PEO space, and we are proud to have worked with them over the last six years to expand their compelling HR managed services model to more clients in Hawaii and beyond.”
FFL has a long-established track record of investing in growing tech-enabled HR Services businesses. Recent investments in the space include Optomi Professional Services, a specialty staffing and onshore outsourcing firm, and Velocity Global, a global HR provider that helps businesses hire compliantly around the world. In April, FFL announced that ALKU, a specialty staffing firm and 2019 FFL investment, had received a new majority investment, with FFL continuing as an investor.
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