Peliton, LLC has been acquired by Aureon, Inc.

The Selling Company: Peliton, LLC, based in Denver, Colorado, is a leading professional employer organization (PEO) serving small and mid-sized businesses with comprehensive employment-related services and HR consulting. The company offers a full range of integrated HR support services including payroll, group health insurance, workers’ compensation insurance, safety and training, HR and compliance, and financial and accounting outsourcing.

Why the company was sold: In 2015, Peliton sold its insurance agency business and then focused on reorganizing and growing the PEO as a self-supported operating entity without the support of the insurance agency resources. The company approached Capital Alliance in 2016 to discuss selling the HR business, effectively completing the divesting of the owners’ businesses for the purpose of its two principal shareholders’ retirement.

Capital Alliance’s Performance: Capital Alliance Corporation (CAC) consulted with the shareholders and developed a plan to approach key buyers in the industry who CAC determined to have a strong interest in the market and size of Peliton. Running a formal process, managing both the number of buyers and a strict timeframe for negotiating initial offers, CAC delivered four strong and competing offers and subsequently improved those offers by as much as 60%. In the end, our client had two very well-matched acquirers with competing offers to choose from and chose the acquirer who provided the most promise in terms of experience, capital and product offerings to support a successful acquisition and future growth opportunities for Peliton, its markets, clients and employees.

Terms of the Transaction: The selling shareholders received 65% cash and obtained an earn-out for the remaining purchase price. Additionally, key employees were retained by the acquirer which was an important concern for our client.

The Acquiring Company: AureonHR is a business solutions provider that provides scalable business support services for organizations — small and large. Serving clients nationally with a presence in 48 states, AureonHR offers a comprehensive suite of support services, with a focus on HR, technology, contact center, and consulting services.