CoAdvantage and PrimePay Announce Strategic Merger to Enhance SMB HR Solutions
Deal News | Mar 05, 2025 | PR Newswire Cision Aquiline
CoAdvantage, a provider of outsourced HR services, and PrimePay, a payroll and HR software firm, have announced a merger facilitated by Aquiline, a private investment company specializing in financial services and technology. The merger plans to enhance HR and payroll offerings for small- and mid-sized businesses (SMBs), creating a comprehensive suite of solutions. Both companies, while continuing to operate independently initially, will eventually provide a united service that leverages their complementary technology platforms. Key elements of the merger include an expanded market presence for CoAdvantage through PrimePay's existing partnerships and customers, as well as shared commitments to innovation in payroll and HR technology. This strategic move is expected to close by mid-2025, marking a significant step in Aquiline's investment portfolio, which manages $11 billion in assets.
Sectors
- Human Capital Management (HCM)
- Technology
- Financial Services
Geography
- United States – Both CoAdvantage and PrimePay operate primarily within the United States market, relevant to the merger's geographical context.
- New York – Aquiline, the private equity firm orchestrating the merger, is based in New York, highlighting its geographical significance to the deal.
Industry
- Human Capital Management (HCM) – The merger involves CoAdvantage and PrimePay, both firms focusing on providing HR and payroll solutions, which is central to the Human Capital Management industry.
- Technology – Both companies are leveraging technology solutions in automating HR and payroll processes, making the Technology sector relevant to the merger.
- Financial Services – Aquiline, the PE firm backing the merger, specializes in financial services, emphasizing the sector's connection to this M&A activity.
Financials
- $11 billion – Aquiline's total assets under management as of December 31, 2024.
- $7.3 billion – Capital deployed by Aquiline across its strategies in private equity, venture, and credit.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| CoAdvantage | Target Company | Company | A Professional Employer Organization providing HR services and solutions, part of the merger to expand and integrate offerings. |
| PrimePay | Target Company | Company | A software business offering payroll and HR solutions, merging with CoAdvantage to enhance service capabilities. |
| Aquiline | Private Equity Firm | Company | The investment firm facilitating the merger, specializing in financial services and technology sectors. |
| Joe Pappalardo | Partner | Person | A partner at Aquiline, providing insights into the strategic rationale of the merger. |
| John Cumbee | CEO | Person | The CEO of CoAdvantage, discussing the strategic benefits and future expectations from the merger. |