PrismHR, the leading HR technology platform powering payroll-benefits and HR for small and medium-sized businesses across the U.S., today announced that funds managed by Stone Point Capital LLC have taken a majority stake in the company. Stone Point, a leading private equity firm focused on investing in the financial services industry, joins existing investor Summit Partners as the company continues its quest to fuel the growth of America’s small businesses through HR, benefits and technology that level the playing field with large enterprises.
“Stone Point, with its experience in PEO, employee benefits and HR technology, will be an incredibly valuable resource for us as we further our strategy to deliver software and services to our network of 300+ HR outsourcers serving small businesses nationwide,” said Gary Noke, President and CEO of PrismHR. “We see a tremendous opportunity to use technology and data to make it easier and more cost effective for our HRO partners to improve operational efficiency and to deliver a world-class client and employee experience.”
“We’re thrilled to be partnering with PrismHR and believe that there is significant opportunity for growth for HR outsourcers serving the SMB market,” said Jarryd Levine, Principal of Stone Point. “PrismHR and its network of HR service providers can bring incredible value to employers by helping them lower costs and compete in new ways through the use of technology to deliver quality services and top-tier benefits products to their employees.”
“As the HR function becomes increasingly complex, we have observed continued growth in the demand for outsourced HR solutions for SMBs,” said Scott Collins, Managing Director at Summit Partners, which invested in PrismHR in 2017. “With a sophisticated, scalable and comprehensive platform, we believe PrismHR is strongly positioned to help SMBs manage this complexity. It has been a pleasure to work alongside Gary to expand the PrismHR team and enhance the platform, and we are looking forward to continuing our partnership.”
William Blair served as investment advisors and Kirkland & Ellis served as legal advisors for both PrismHR and Summit Partners in the transaction. Kramer Levin Naftalis & Frankel LLP served as legal advisor to Stone Point.