The Carlyle Group acquires payroll provider BenefitMall for undisclosed sum

The aim is to invest in the Dallas-based company to help it expand into the growing integrated payroll and benefits market.

BenefitMall, one of the largest US payroll and benefits providers, reportedly plans to go on an acquisition spree after being bought itself by investment giant, The Carlyle Group.

The global alternative asset manager purchased BenefitMall from an investor group led by Austin Ventures for an undisclosed sum. The transaction is due to close by the end of the year.

The Dallas Business Journal said that a company spokesman emailed it, saying: “Significant growth is anticipated through both organic and acquisition under our new ownership.”

The Dallas-based payroll provider, which focuses on selling its payroll and employee benefits services to 200,000 small and medium-sized businesses across the US, currently generates more than $200 million in revenues per year.

Carlyle’s managing director Jim Burr said the intention was to invest in its acquisition. “Through capital investment, an expanded salesforce and Carlyle’s industry experience and network, we believe BenefitMall can expand and take significant market share as the demand for integrated benefits, payroll and related products and services continues to grow within an increasingly complex regulatory environment,” he explained.

Equity for the purchase will come from Carlyle Global Financial Services Partners II, a $1 billion fund that invests in financial services firms across the world.

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