Summit Partners Announces Growth Equity Financing for Leading HRO Software Provider PrismHR

SOUTHBOROUGH, MA and BOSTON, MA ― PrismHR, the leading provider of software for human resource outsourcing (HRO) service providers, today announced a majority investment from global growth equity investor Summit Partners. This transaction includes new funding that will help propel the delivery of additional software and services to the more than 340 HRO organizations that use PrismHR software today, helping them grow and thrive.

With over 20 years of experience in the field of human resources, PrismHR provides comprehensive software solutions for professional employer organizations (PEOs) and administrative service organizations (ASOs). PrismHR helps those HR organizations save time, improve productivity, migrate risk and attract, win and retain business more effectively than any other available solution.

“As the human resources function increases in complexity, the demand from small and medium-sized businesses for outsourced HR solutions continues to grow,” said Gary Noke, President and CEO of PrismHR. “PrismHR offers one of the most extensive and flexible platforms available to HROs. Our partnership with Summit will enable us to accelerate the development and expansion of this platform to meet the growing demands of our clients and their end customers.”

PrismHR has realized strong growth since Accel-KKR made an initial equity investment in 2014. The company’s achievements include:

• Increased total revenue and headcount by nearly 3x
• Grew annual revenue 59% in 2016
• Released the next generation of the PrismHR Platform – the HR outsourcing solution for Payroll, Benefits, HR and more
• Expanded the platform with applicant tracking, mobile capabilities, next generation benefits enrollment, integrated time support and enhanced extensibility
• Increased the number of HR Service Providers using PrismHR software by 94%, which led to 50% growth in worksite employees

“PrismHR’s recent growth has been remarkable, and we believe the company is well positioned to continue this impressive trend,” said Scott Collins, Managing Director at Summit Partners who will join the PrismHR board of directors. “The company’s cloud-based software allows HROs to service their small and medium-sized customers with a more seamless, sophisticated solution – and positions PrismHR to capitalize on the tremendous opportunity in human resources technology and services.”

“This new capital, combined with Summit Partners’ extensive resources and experience, will help us to execute on our vision faster than ever,” added Noke. “We can now build out the next phase of our corporate strategy and products, allowing our clients to take full advantage of the scale, resources and depth of the PrismHR platform – and to accelerate their own growth in the process.”

In addition to Mr. Collins, Summit Partners Vice President, Zachary Gut will join the PrismHR Board of Directors. Existing investor Accel-KKR invested alongside Summit Partners in the transaction and Greg Williams, Managing Director, will remain on the PrismHR board. PrismHR founder Fred Davison continues to be a significant shareholder in the Company.