CoAdvantage Creates National Platform in the Professional Employer Organization (PEO) Market
CoAdvantage Creates National Platform in the Professional Employer Organization (PEO) Market Strategic Acquisitions of Discovery Outsourcing and Compensation Solutions Add Scale and Further Expand National Footprint
February 26, 2014 – Tampa, FL – CoAdvantage Corporation (“CoAdvantage” or the “Company”), a leading provider of strategic Human Resource solutions for small to mid-sized companies, announced the acquisitions of Colorado-based Discovery Outsourcing, LLC and New Jersey-based Compensation Solutions. Both acquisitions further expand CoAdvantage’s national footprint, while accelerating the company’s growth and strengthening its position in key geographic markets. The combined platform will serve over 2,200 clients and over 45,000 employees with a range of HR outsourced solutions to small and medium sized businesses. The management teams of both companies will join CoAdvantage in leadership roles to continue building out their service models.
“Discovery Outsourcing and Compensation Solutions have effectively built strong, high-quality businesses rooted in exceptional customer service,” said Mike Maseda, CoAdvantage President and CEO. “We are excited to marry their core strengths and regional acumen with our scale and resources to advance our market presence to a national level.”
CoAdvantage is a portfolio company of CIP Capital. Bobby Kelly, Managing Director of CIP Capital, said: "Our initial thesis was to build out a national platform with a focus on expanding into the West and Northeast markets with high quality PEO providers. Today’s acquisitions are a critical step forward in our vision for creating a leading PEO committed to offering dynamic HR solutions.”
Discovery Outsourcing is the largest and fastest growing PEO in Colorado and is the recipient of numerous awards, including five-time recognition on the Inc. 5000 list of Fastest Growing Companies and one of the “Top 250 Private Companies” recognized by ColoradoBiz. “We believe joining CoAdvantage will accelerate our explosive growth in the Colorado market and generate new opportunities in the Rocky Mountain region and beyond,” said CEO Todd Beutel, who will join CoAdvantage as President of the West region. Andrew Stohl, Discovery Outsourcing’s CFO, will also join CoAdvantage as COO of the West region.
Compensation Solutions (CSI) is a comprehensive human resources administration firm established in 1997. In 2013, NJBIZ named the company “Business of the Year,” and acknowledged it as one of the “Best Places to Work.” CSI also received the “2013 Outstanding Employer” award from the New Jersey Business and Industry Association (NJBIA).
“CoAdvantage’s scale and resources bring added value to our customers and the Northeast market,” said Susan Molosh, President of CSI. “Our enhanced position will allow us to further penetrate the region with our high-touch, hi-tech, award-winning service model,” she said. Molosh, named by NJBIZ as one of the “Best 50 Women in Business” will continue as President of CSI, while CEO Thomas J. Cioffe will serve in a leadership capacity at CoAdvantage.
CoAdvantage’s acquisitions continue its steady growth in the PEO industry. The company acquired Texas-based Odyssey OneSource in 2011, and opened additional offices in Austin, Palm Beach, and Phoenix in 2013. CoAdvantage now serves over 45,000 worksite employees in all 50 states, offering the resources of a national provider with a local focus to business owners around the country.