Asure Software Acquires USA Payroll

Asure Software (ASDAQ:ASUR), a leading provider of Human Capital Management (HCM) and workplace management software announced it has acquired USA Payroll.

Headquartered in Rochester, New York, USA Payroll resells Asure Software’s industry leading HRIS platform, Evolution and works with companies to reduce compliance risk and manage time through comprehensive workforce management solutions.

As quoted in the press release:

Founded in 1994, USA Payroll delivers its services to clients located primarily in the Northeastern area of the United States. USA Payroll provides payroll and tax services, workforce benefit solutions, insurance services, payroll timekeeping, human resources, and third-party administration. It has experienced continued growth by addressing client pain points that larger payroll companies often overlook.

Pat Goepel, CEO of Asure Software, said, “We continue to capitalize on the multimillion-dollar reseller consolidation opportunity. The addition of USA Payroll not only expands our national reach but also enables us to provide clients with access to greater breadth and depth of solutions. Asure has a significant opportunity to help educate our clients in modern workforce technology, adding value to many areas of their business.”

“We built our company on the quality of service that we’re able to offer our clients. That’s what separates us from our competition,” said Ralph Fornuto, President of USA Payroll. “We are confident that the same values and services will continue with Asure Software. With the addition of workforce and workspace solutions, we will continue to set our clients up for success.”

2018 Financial Outlook

“Based on the closing of this transaction, we are updating our 2018 guidance.  For fiscal 2018, we now expect to achieve revenue of $93.0 million to $96.0 million, up from $90.0 million to $93.0 million.  Our non-GAAP EBITDA guidance continues to be $20.0 million to $23.0 million,” stated Mr. Goepel. More details will be provided on Asure’s second quarter 2018 earnings call.

“This transaction is in-line with our stated objective of scaling our business both organically and inorganically through strategic acquisitions. We continue to be focused on achieving our short-term goal of surpassing $100 million in revenue and generating non-GAAP EBITDA margin of 22% to 25%,” concluded Goepel.

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