Decisely acquires SMB business of IBX
Decisely, a company that offers a platform that combines benefits, HR resources and technology to support small businesses, has completed an acquisition of IBX Outsourcing, terms were not disclosed.
This is Decisely's second acquisition, with plans to acquire many other companies in 2018, the company, the firm's CEO Kevin Dunn says.
The procurement of the small business division of IBX Outsourcing follows a $60 million funding commitment from Two Sigma Private Investments and EPIC Insurance Brokers and Consultants. The Decisely platform integrates and automates recruiting, applicant tracking, benefits and administration, payroll and retirement solutions to simply and effectively manage an employee’s lifecycle with a small business employer. The company also works with brokers.
IBX is a service partner for benefit brokers, helping brokers optimize their employee benefits operations. The large-market division within IBX will continue to be owned and managed by Alliant Insurance Services.
IBX will continue to service its existing broker and small business clients. Decisely will make its expanded HR and benefits platform available to IBX clients and will add offices in three states, as well as more than 400 small-business customers across the country.
Bringing businesses and brokers together
“Trusted advisers are a critical part of any HR and employee benefits offering, but it is difficult for these brokers to effectively meet the demand of and profitably serve small business clients,” Dunn says. “With IBX, we can help bring small businesses and brokers together through a high-touch, technology-enabled solution that benefits both.”
The new company aims to reach more brokers with integrated options for lowering costs, increasing margins and better serving clients.
The company’s model is predicated on partnering with brokers, Dunn explains. Decisely partners with large and small brokers and is a referral engine for small businesses that, as their business becomes more profitable, serve as a lead generation for the broker to develop more clients.
The deal is part of the firm’s operational strategy to build long-term scale and is the second acquisition since the private equity funding.
“There will be many more” acquisitions, Dunn explains. While he declined to discuss targets, he says the deals are done for 2017, but will ramp up in 2018, “to continue our growth.”