Payworks secures Hg investment to boost Canadian HCM software
LONDON, ENGLAND and MANITOBA, CANADA — Winnipeg-based Payworks, a Canadian provider of total workforce management solutions, has announced a landmark strategic investment from Hg, a software and services investor with deep experience in human capital management (HCM).
This significant investment is poised to accelerate Payworks’ product development and market expansion, leveraging Hg’s extensive expertise in scaling HCM software businesses to strengthen its position across Canada.
Accelerating innovation and market reach
The Hg partnership can assist Payworks in gaining the capital and strategic resources to realize its growth and diversification strategy more quickly.
This is a key turn in the 25-year path of Payworks, as the company will be able to accelerate improved product development and increase its dominance in the Canadian HCM market.
The investment will be tailored to merge Payworks’ local experience with Hg’s expertise in the global expansion of the software business.
“Their investment enables us to accelerate our innovation and value creation agenda, positioning Payworks for sustained leadership and diversification in the Canadian market,” said Barbara Gamey, Co-founder of Payworks.
Payworks’ current strong foundation and commitment to the Canadian market have paved the way for this rapid expansion. This will not impact the company’s operations in any way, as it has a team of over 600 employees and a national network of offices that will ensure continued operations, and its clients will not be affected.
The partnership will enhance the client experience and create long-term value for businesses and employees in Canada.
Investment underscores customer satisfaction
The partnership is a testament to Payworks’ market position, which is built on its proprietary solutions and high customer satisfaction.
The decision made by Hg was made after a significant amount of due diligence. “In our research we surveyed more than six hundred payroll and HR customers in Canada and found that Payworks has a best-in-class product with the highest customer satisfaction,” explained Alexander Johnson and Hector Guinness, Directors at Hg.
Principal Robert Citrino noted the possibility of speeding up innovation and reaching out to more Canadians, which reflects a shared vision for expanding the company’s two-decade record of providing customized workforce management systems to Canadian employers.
Global growth strategy in HCM
Hg has been able to position itself as a force with the ability to strategically recognize and acquire high-potential businesses, thereby becoming a major player in the global software market. Hg does not run its own services but utilizes deep industry experience and substantial capital, with over $100 billion in assets under management, to support its portfolio of over 50 software and services businesses.
The company focuses on providing strategic advice, operational guidance, and funding that these companies require to grow rapidly, with a strong emphasis on industries being digitized and automated, such as HCM.
Payworks is a market provider in offering cloud-based solutions for total workforce management, having established a strong reputation in Canada since 2001. The company provides a unified payroll, HR, time management, and analytics solution to businesses, supported by its service promise, and this has led to it being regularly awarded as one of the Best Managed Companies in Canada.
Payworks employs a few hundred people and has an estimated annual turnover of around $105 million, which is precisely the kind of well-established, quality-driven, and growth-flexible unit that Hg would be willing to partner with.
This alliance is set not only to cement the role of Payworks in the market but also to boost its competitive advantage and service delivery to Canadian businesses.
