Robert F. Smith and his Vista Equity Partners acquires PlanSource Inc.

Press Release | PlanSource, a leading provider of cloud-based benefits administration technology, earlier this week announced it has entered into a definitive agreement to be acquired by Vista Equity Partners (Vista), a leading investment firm focused on enterprise software, data and technology-enabled businesses. Vista partners with management teams to foster operational excellence, paving the way for sustainable growth opportunities, innovation and impact in the markets they serve. Vista’s acquisition of PlanSource marks the beginning of a new phase of growth for the software provider.

“This deal is a landmark moment for our company, and a clear validation of our strategy and business model,” said Dayne Williams, CEO of PlanSource. “Since our founding, our mission has been to revolutionize the way benefits are bought, sold and managed. Vista’s investment and deep commitment to building and scaling world-class software companies takes us one step closer to making our vision a reality.”

The acquisition by Vista comes after a period of rapid growth for PlanSource. In 2018, the company experienced a 25 percent increase in annual recurring revenue, and more than 750 new employers started using PlanSource to manage their benefits programs. PlanSource also cemented several partnerships in 2018 with insurance carriers, brokers and technology providers that expand its benefits offerings and provide access to new markets. In addition, PlanSource recently launched a number of product innovations, including a first-of-its-kind self-service renewal tool, new mobile-responsive user experiences for employees and HR teams, and API-based integrations with HCM providers and insurance carriers.

With backing from Vista, PlanSource intends to accelerate its product roadmap and build on its innovative partnership programs. Key areas of investment include real-time integrations with insurance carriers, insightful analytics for all stakeholders, and intuitive tools for self-service, personalization and communications that simplify the benefits experience for employees and HR teams.

“We are thrilled to welcome PlanSource to the Vista family,” said Robert F. Smith, Founder, Chairman and CEO of Vista Equity Partners. “Their reputation as a leader and innovator in the benefits technology arena is well-earned, and their solutions are helping companies simplify the important process of managing the benefits employees depend on. We look forward to partnering with Dayne and the leadership team to accelerate the company’s growth.”

PlanSource was founded in 2008 and its early growth was spurred by funding from Lemhi Ventures and Timucuan Asset Management. In 2015 the company raised US$70 million of Series C funding with an investment from Great Hill Partners.

“It has been a great pleasure working with the PlanSource team,” said Chris Busby, Partner at Great Hill Partners. “We appreciate the tremendous performance by Dayne Williams and the entire management team. Our approach has always been to partner with talented executives to accelerate growth and expand market leadership. PlanSource is extremely well positioned for continued success in the years to come.”

PlanSource will continue to operate independently. The transaction is currently expected to close in the coming weeks and is subject to customary closing conditions and regulatory approvals.

About PlanSource: PlanSource is a technology company driven to create a better benefits experience for employees and the HR teams that support them. Nearly 4.5 million consumers receive their benefits through the PlanSource platform, which provides flexible and intuitive software and services for benefits administration. By combining industry-leading software and a full suite of technology-enabled services, PlanSource provides companies of all sizes with a complete solution for benefits shopping, enrollment, billing, compliance and administration. Learn more at www.plansource.com.

About Vista Equity Partners: Vista Equity Partners – Founded by Robert F. Smith in 2000 – is a U.S.-based investment firm with offices in Austin, San Francisco, Chicago, and Oakland with more than US$30 billion in cumulative capital commitments, currently invests in software, data and technology-based organizations led by world-class management teams with long-term perspective.

Vista Equity Partners is a value-added investor, contributing professional expertise and multi-level support towards companies realizing their full potential. The firm’s investment approach is anchored by a sizable long-term capital base, experience in structuring technology-oriented transactions, and proven management techniques that yield flexibility and opportunity in private equity investing.. For more information, please visit www.vistaequitypartners.com.

Source: PlanSource