Sources: Gusto paid $ 600 million to gain the guideline principle, plans to strip customers associated with competitors

Last month, GUSTO, a salary and human resource programs company, announced that it He agreed to acquire The guideline principle, an emerging company that provides retirement plans for small and medium -sized companies.

The conditions of the deal were not revealed, but GUSTO paid approximately $ 600 million, according to a source familiar with the deal, although Techcrunch was unable to confirm the amount of this cash and the amount of shares.

The last time principle was evaluated in $ 1.15 billion In 2021 when it raised Series 200 million dollars d Funding round. Since its foundation in 2015, it raised a total of $ 340 million. Although the acquisition price is lower than the private starting evaluation, investors are in the early stage of the company, including Felisis, Tiger Global, and NEA, will achieve return. The sources say that General Atlantic, who led the company D, is expected to get a small profit for its investments.

The former taskrabbit company, Kevin Busque (in the above image), helps the guideline, small and medium -sized companies easily prepare and manage plans 401 (K) easily. He receives flat fees for each employee instead of the traditional model for charging a percentage of management assets. CNBC reported that the annual repeated revenues of the guidelines (ARR), a measure that measures the annual income that can be predicted from subscriptions, was. 140 million dollars As of last January.

GUSTO, founded in 2011, at $ 9.3 billion, offers retirement plans 401 (K) to its customers through a partnership with the guideline principle since 2015. But Guideline’s relationship with Gusto is not exclusive. Customers can also prepare guidance pension plans through other salary lists such as ADP, Intuit, Paylocity, Trinet and Excling.

According to three sources familiar with the transaction, GUSTO is looking to sell the calculations of the guideline related to the competing salary lists. A person familiar with the deal said that sales revenues will be shared between beginners shareholders and guidelines.

Gusto refused to comment on the deal price and disposal plans.

The spokesperson for the guideline described the price of $ 600 million as incorrect without providing more information, and said that the company does not have any plans to plan any of its customers as part of its sale to Gusto.

Although this seems to be a profitable treatment for shareholders in the guideline principle, the logical basis of the company for sale is still unclear. The company spokesman confirmed that the company was profitable for more than a year. However, it faces a lot of competition, such as who The humanitarian interestThe closest rival, supported by Softbank and Baillie Gifford. Humanitarian interest has grown by 70 % last year, and it is expected to be profitable by the end of the year, said the co -founder of the company and CEO Jeff Shenbel told Techcrunch. The Human Service in talks to raise 200 million dollars, with a rating of $ 3 billion, which doubled its evaluation a year ago, and information I mentioned. Shenbel refused to comment on the company’s fundraising plans.