GPB Capital Holdings LLC, a New York-based alternative asset management firm, has purchased a majority ownership stake in Surge Resources, a provider of professional employer organization (PEO) services to small and medium-sized businesses located primarily in New Hampshire, Massachusetts, Vermont and Maine. Financial details were not disclosed.
Surge is based in Manchester, New Hampshire and 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.
The acquisition represents GPB Capital’s second acquisition within the business services sector, following the acquisition of Jacksonville-based MatrixOneSource in January.
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, founder and CEO of GPB Capital.
Additionally, GPB noted that “numerous potential synergies between Surge and MatrixOneSource have been identified and may result in both financial and operational improvements going forward.”
GPB Capital focuses on acquiring or investing in income-producing companies and assets and has raised more than $1.5 billion in capital.