Significant Growth Capital Investment to Continue Product Innovation, Scale Go-To-Market, and Pursue Strategic Acquisitions
TORONTO, Sept. 9, 2020 /CNW/ - Wagepoint, makers of online payroll software for Canadian and U.S. small business, announced a majority recapitalization and strategic growth investment by funds advised by Providence Strategic Growth (PSG), the growth equity affiliate of Providence Equity Partners, a premier asset management firm focused on the media, communications, education, software and service industries. The transaction includes more than $10 million of new capital that will be used to fuel Wagepoint's next phase of growth, including continued product innovation, scaling the go-to-market and best-in-class customer support organization, and pursuing strategic acquisitions, in order to better serve Wagepoint's small business clients across North America.
"We see this partnership with PSG as a big vote of confidence for Wagepoint and an incredible win for our customers — who we can now support and help thrive even more with the substantial growth capital investment from PSG," explains Shrad Rao, CEO of Wagepoint. "It takes a lot of hard work to build a high-growth company in Canada, especially right now. We've gotten here by being laser-focused on giving entrepreneurs, accountants, and bookkeepers the tools and flexibility they need to succeed. This investment is a big step forward for the Wagepoint family, which includes our small business customers and partners — and it's only the beginning."
"We are very excited about the opportunity to partner with Wagepoint in their next phase of growth," says Rick Essex, Managing Director, Providence Strategic Growth (PSG). "Small- and medium-sized businesses continue to adopt cloud payroll technology at a rapid pace, and Wagepoint has developed a powerful, market-leading platform to serve this growing demand. Shrad and his team have done an exceptional job, focusing heavily on the user experience and developing a robust product that is extremely intuitive, affordable and easy-to-use. We look forward to working with Wagepoint as they continue to innovate and provide exceptional products and service to their community of users."
Founded in 2012, Wagepoint provides payroll software to more than 12,000 small businesses across North America. Their simple and intuitive software and leading customer support makes it easier for small businesses to automate payroll, which is often one of the most cumbersome and intimidating back-office functions. When small businesses use Wagepoint, they no longer have to calculate wages and taxes manually. Additionally, Wagepoint can also automate the reporting and payment of taxes to the proper organizations and authorities. It's faster, there are fewer mistakes, and employees can simply log in to the secure online portal to review their pay history, including every direct deposit to their account.
There is growing recognition among the business community about the importance of using software to make payroll flexible and simple. According to a recent survey of Canadian small businesses by Wagepoint, 72 per cent of small business owners believe payroll is as important as sales, invoicing, and general accounting, while 40 per cent of SMBs that reduced headcount due to COVID-19 feel payroll needs to be flexible enough to accommodate quick changes to their workforce.
From the company's early days in Halifax to later being a graduate of Kitchener-Waterloo'sCommunitech HYPERDRIVE program, Wagepoint has roots throughout Canada and the United States and has operated as a fully-remote company since its inception. The partnership between Wagepoint and PSG was brokered by leading investment banking firm, Raymond James.
About Wagepoint: Founded in 2012, Wagepoint is simple payroll software designed for small businesses and backed by the world's friendliest team. Intuitive and easy-to-use, Wagepoint helps more than 12,000 North American small businesses and the accountants and bookkeepers who serve them, automate the most time-consuming parts of payroll. This includes a wide-range of basic (and not-so-basic) calculations as well as payroll tax reporting and payments. In addition to saving time, Wagepoint helps prevent costly mistakes that are often more expensive than the software's low monthly fee. To learn more, visit www.wagepoint.com.
About PSG: Providence Strategic Growth ("PSG") is an affiliate of Providence Equity Partners ("Providence"). Established in 2014, PSG focuses on growth equity investments in lower middle market software and technology-enabled service companies. Providence is a premier global asset management firm that pioneered a sector-focused approach to private equity investing with the vision that a dedicated team of industry experts could build exceptional companies of enduring value. Since the firm's inception in 1989, Providence has invested in more than 180 companies and is a leading equity investment firm focused on the media, communications, education and information industries. PSG is headquartered in Boston, MA, with offices in London and Kansas City. For more information on PSG, please visit www.provequity.com/private-equity/psg, and for more information on Providence, please visit www.provequity.com.
For further information: Media Contacts: Vin Heney, NorthPR, [email protected], 416-805-9332; Providence Strategic Growth, Hayley Cook / Kate Gorgi, Sard Verbinnen & Co., [email protected]