Coalesce Capital takes majority stake in DecisionHR to scale PEOs

Coalesce Capital has agreed to take a controlling position in DecisionHR, a Florida-headquartered Professional Employer Organization that serves thousands of small- and mid-sized US businesses. The deal, announced today, positions Coalesce to accelerate DecisionHR’s national expansion by injecting capital into technology, people and acquisition-led growth.

Founded in 1996 and based in St. Petersburg, DecisionHR provides outsourced HR functions including payroll and tax administration, benefits management, workers’ compensation and risk-control services. Its platform targets the fragmented market of SMEs that increasingly prefer bundled HR services to reduce administrative cost and regulatory risk.

Coalesce Capital, which manages roughly $1.6 billion in assets, said it will back DecisionHR with strategic resources and funding to modernize the firm’s technology stack, expand its commercial footprint and pursue bolt-on purchases. Management will remain in place and retain a meaningful equity position alongside Coalesce and other existing shareholders.

Peter Newman, DecisionHR’s chief executive, said the partnership will enable faster product investment and improved service delivery to clients. In separate comments, Stephanie Geveda, Founder & Managing Partner at Coalesce, framed the move as part of a wider push into human-capital and tech-enabled services where outsourcing can materially improve client outcomes.

Coalesce’s stated playbook combines product investment and roll-up activity: upgrade core software, add specialist talent, and acquire local operators to standardize operations and broaden national coverage. If executed, that strategy can lift margins by leveraging centralized payroll, benefits procurement and claims management across a larger client base.

Advisors on the transaction include Lazard as exclusive financial advisor to DecisionHR, with legal counsel provided by Jones Day; Latham & Watkins advised Coalesce. Financial terms were not disclosed and the parties expect to close the transaction by year-end pending customary regulatory approvals.