Compensation data companies PayScale and Payfactors have decided to stop competing and join forces. Their merger will form a company of 600 employees and some 10,000 customers, including half of the Fortune 500.
PayScale CEO Scott Torrey will lead the combined organization, which will operate under the PayScale name. Payfactors CEO Jeff Laliberte will become chief strategy officer and a member of PayScale’s board..@PayScale, Payfactors to join forces. Merger forms a company of 600 employees and some 10,000 customers, including half of the Fortune 500. #HR #HRTech Click To Tweet
The new PayScale plans to hit the ground running. In a press release, it said that working together will “overnight” provide more resources for nearly all aspects of its combined operations. Meanwhile, Torrey told GeekWire that the combined data set will reach a “massive scale” and be “the single largest data set that is the source of truth around employment in the United States.” It will include compensation data for about 30% of the U.S. working population, he said.
PayScale aims to earn $200 million in revenue by 2022, Torrey said, which would represent 20% growth. He described the merger “a massive step” toward that goal.
‘An Obvious and Natural Fit’
PayScale and Payfactors recognized they had “an obvious and natural fit” as both pursued a mission “to empower companies to make compensation a strategic imperative and transform the relationship that employers have with their employees,” said Laliberte. “Together, we can better serve the needs of our customers by providing the right data, at the right time, within the right context to better inform human capital management decisions.”
Insight Partners, a venture capital firm that had backed Payfactors, will make a new equity investment into the combined company, joining Francisco Partners as part of PayScale’s investor base. Among Insight’s other investments are Mimecast, Twitter, DocuSign, Smartsheet and Pluralsight.
The companies agreed to the merger in late 2020, GeekWire reported. They made a confidential filing with the Department of Justice in December, and regulators completed an informal review last week. The deal was scheduled to close today.