NEW YORK, Nov. 20, 2018 /PRNewswire/ -- GPB Capital Holdings, LLC (GPB Capital) has completed the acquisition of a majority ownership stake in Surge Resources ("Surge"), a provider of professional employer organization (PEO) services to small and medium-sized businesses located primarily in New Hampshire, Massachusetts, Vermont and Maine. The acquisition represents GPB Capital's second acquisition within the business services sector, following the acquisition of Jacksonville-based MatrixOneSource in January.

"We are excited to continue to build out our multi-regional PEO platform with an established partner," said David Gentile, Founder and CEO of GPB Capital. "By providing financial and operational assistance that can help PEOs and other business services companies achieve the next level of growth, we help make it possible for them to serve more small and medium-sized companies. We look forward to working with our operating partners in the PEO industry to make a positive economic impact on a variety of local markets."  

Manchester, New Hampshire-based Surge (http://surgehrs.com/) provides payroll administration, safety and risk management, benefits administration, tax compliance, unemployment, 401(K) plan, human resource consulting and other PEO services to over 150 companies with approximately 2700 employees. Surge's 30 year track record as a trusted service provider throughout New England has led to strong client relationships and low attrition.

GPB Capital will provide capital as well as strategic and operational assistance to help Surge expand its presence in New England. "The acquisition of Surge, which closed on October 30th, 2018, with its proven record of success, creates a PEO platform in New England for GPB Capital into which the firm can integrate 'tuck-in' acquisitions going forward," said David Gentile.

"We became a preferred provider of PEO services thanks to our dedication to unparalleled service and focus on our customers each day," said George Attar, President of Surge. "We are thrilled to enter into this relationship with GPB Capital, who shares our commitment to building a first-class organization, and we are eager to work with the firm to enhance our operations and deliver PEO services to a greater number of businesses throughout New England."

GPB Capital's Second PEO Acquisition Seeks to Create Increased Scale and Opportunities for Efficiency

With the acquisition of Surge, the PEO platform now services over 10,000 employees, nearing the top 20 PEOs in the industry as measured by employee count. Additionally, numerous potential synergies between Surge and MatrixOneSource have been identified and may result in both financial and operational improvements going forward.

The PEO sector is a segment within human resource services that GPB Capital believes offers attractive business opportunities. PEO companies specialize in providing human resources management and administrative services to small and medium-sized businesses through a co-employment relationship in which PEOs serve as the co-employers of their clients' employees, while enabling clients to spend more time focusing on their day-to-day and core business operations. While the five largest national PEOs account for approximately 43% of the industry's revenue in 2018, the remainder of the market is controlled by hundreds of smaller regional and local companies. With approximately just 12% of U.S. companies between 10 and 99 employees utilizing PEOs, according to the National Association of Professional Employer Organizations, PEOs have plenty of room for growth.

"Many small and medium-sized businesses do not have the resources to support a full-time human resources staff. PEOs serve as a vital partner to these organizations, helping them comply with the ever-changing myriad of Federal and State regulatory requirements," said Abhaya Shrestha, Managing Partner at GPB Capital responsible for the firm's Business Services Strategy. "The addition of Surge, along with MatrixOneSource, will help drive towards our goal of a creating a national PEO platform which can offer a robust suite of human resources and administrative services to small and medium sized, growth-focused companies at a time when employment regulations continue to evolve and increase in complexity."  

About GPB Capital Holdings, LLC
GPB Capital is a New York-based alternative asset management firm focused on acquiring or investing in income-producing companies and assets. GPB Capital seeks to provide its portfolio companies with the strategic planning, managerial insight, and capital needed to enable strong businesses to achieve the next level of growth and profitability. GPB Capital has raised more than $1.5 billion in capital. For more information, please visit www.gpb-cap.com.

Media Contact:           
Dana Taormina
JConnelly for GPB Capital
973.850.7305
dtaormina@jconnelly.com

SOURCE GPB Capital