Coalesce Capital has agreed to acquire a majority stake in DecisionHR, a national provider of human resources outsourcing services. The transaction is expected to close by the end of the year, subject to customary regulatory approvals and closing conditions. The current management team will continue leading the company following the transaction and will retain a meaningful ownership stake alongside existing shareholders.
DecisionHR was founded in 1996 as a Professional Employer Organization offering payroll and tax administration, workers’ compensation, risk management, and employee benefits administration. The company provides scalable, technology-enabled HR solutions for thousands of small and mid-sized businesses across the United States, enabling clients to operate more efficiently and remain compliant with workforce regulations.
Coalesce Capital plans to support DecisionHR’s expansion by investing in technology, talent, and strategic acquisitions aimed at strengthening its service platform and expanding its reach. With the growing demand for outsourced HR services among businesses seeking to streamline their operations, the partnership is well-positioned to accelerate DecisionHR’s national growth.
Advisors/support: Lazard served as exclusive financial advisor, and Jones Day acted as legal advisor to DecisionHR. Latham & Watkins acted as legal advisor to Coalesce Capital.
KEY QUOTES
“DecisionHR has established itself as a trusted partner to small- and mid-sized businesses seeking comprehensive, scalable HR solutions. Coalesce brings significant experience and expertise in this sector, and we believe the partnership will accelerate our growth trajectory and drive meaningful value for our clients through enhanced service delivery and platform capabilities.”
Peter Newman, CEO of DecisionHR
“As businesses prioritize core operations in the current market environment and seek to reduce the administrative burden of managing human resources, we’re witnessing increased penetration of outsourced PEO solutions. DecisionHR is ideally positioned to capitalize on this market opportunity and expand its footprint. We are excited to partner with Peter and the team to support their continued success and help the Company reach more customers nationally in a market that remains highly regionalized.”
Stephanie Geveda, Founder & Managing Partner at Coalesce Capital
“Our thesis centers on professional services companies that enable businesses to scale faster and further while allowing their leaders to focus on what they do best. DecisionHR exemplifies this value proposition, delivering mission-critical HR solutions that reduce the burden on management teams and enable them to concentrate on business strategy and operations. We look forward to supporting DecisionHR’s expansion plans and growth initiatives as a PEO leader.”
Austin Heiman, Managing Director at Coalesce Capital
