Nelco and PlanSource to Become Part of CoAdvantage Family of Companies, Significantly Increasing CoAdvantage’s Size and Value after 10 Years of Success
ORLANDO, Fla.--(BUSINESS WIRE)--CoAdvantage, a leading provider of end-to-end human resource solutions, today acquired two successful businesses — Nelco, Inc., and PlanSource. The acquisitions are expected to significantly increase profits for 10-year-old CoAdvantage, making it one of the top 10 professional employer organizations (PEOs) in the country, with 2007 total projected net revenue of $106 million. The acquisitions will also further the company’s mission to bring value to all stakeholders and will increase internal staff by 56 percent, as well as worksite employees, which total more than 30,000 throughout Florida, by 38 percent. The resulting entity includes two PEOs, a human resource outsourcing (HRO) company, an insurance agency, and a benefits administration software and services company.
CoAdvantage is one of first companies in the human resource services industry to demonstrate a growth strategy — through its HRO and PEO solutions — that effectively meets clients’ needs as they mature. This is especially essential in the current down market when small and medium-sized businesses (SMB) need to eliminate risk and create more financial and human resource efficiencies. CoAdvantage makes it possible for employers to cut costs while, at the same time, providing the best employee benefits possible.
“The acquisition of Nelco and PlanSource will allow us to substantially increase our value proposition to our clients,” said CoAdvantage CEO Dayne Williams. “We will enhance our bundled HR solutions to the small employer by incorporating the strengths of Nelco, while the PlanSource acquisition will provide the necessary software platform to effectively deliver our solution to employers of the mid market.”
Nelco was approached by more than 40 potential buyers. Founder Virginia Dorris — who is retiring — and her daughter, President Dori Rath, chose CoAdvantage because of its commitment to customer satisfaction and desire to retain the location, president and management team.
“Our customers will keep everything they like about Nelco,” said Rath. “We’ve spent decades building Nelco’s excellent reputation. We didn’t want to sell the company to anyone less. We are incredibly pleased with this acquisition.”
“With the Nelco acquisition, we are marrying two of the best PEOs, as far as perception and value in the marketplace, to create one of the top PEOs in the country,” said CoAdvantage PEO President Ben Hewitt. “This gives us the size we need to become a tier-one player and the ability to serve our clients through more efficient and effective methods.”
Both CoAdvantage and Nelco are highly regarded for client service and benefits. Clients will benefit with pricing advantages due to the increased buying power of this larger entity. Additionally, overhead expenses will be reduced due to combined resources.
PlanSource, which will become a wholly owned subsidiary of CoAdvantage, will offer proprietary, dynamic software that fully integrates insurance products and administrative tools, along with pre-defined portfolios of benefit options, to both CoAdvantage clients and insurance brokers. This technology will greatly simplify the procurement, implementation and management of health and benefit plans.
“The success and adoption of CoAdvantage’s HRO product has proven the need for an integrated payroll and benefits solution that eliminates the inefficiencies created by working with multiple vendors,” said Williams. “This is one example of how we continue to enhance products that will remove the unnecessary costs within the payroll, benefits and HR industries.”
“This partnership will allow CoAdvantage to expand service offerings into the SMB market space at an unprecedented rate with a product superior to anything in the market today,” said PlanSource Chief Executive Officer Scott Carver. “There has not been a provider out there that has effectively automated all of the HR processes for small businesses while delivering affordable benefit options. No one else has been able to crack that code and we can.”
