Silver Oak Services Partners, a lower middle market private equity firm focused exclusively on service businesses, has made an investment in iSystems in partnership with the founders and management.
iSystems, headquartered in Colchester, Vermont, is a Software as a Service provider of payroll, tax and HR management software for service bureaus including independent payroll processors, banks and CPAs.
iSystems delivers payroll processing capabilities to service bureaus through its core software platform, evolution. The company then sells optional add-on modules around evolution, including employee self-service, payroll manager self-service, HRIS systems, benefit enrolment, check printing, data back-up, training services, help desk support and other consulting services.
The company has approximately 100 licensees who in turn process payroll for roughly 75,000 small and mid-sized businesses.
Silver Oak invested alongside the founders and management in the transaction. iSystems was founded in 1998 by Mike and Des Trahan, who serve as chief executive and chief technology officer.
"This transaction is a great outcome for iSystems. Our partnership with Silver Oak provides us with a value-added partner and the capital resources necessary to continue to invest in product development to better serve our service bureau licensees," says Trahan.
Dan Gill, managing partner at Silver Oak, says: "We are very excited to be partnering with Mike and Des Trahan, David Meagher and the entire team at iSystems and look forward to continuing to accelerate the development of the evolution platform for its service bureau customers."
