PrestigePEO acquires O2 Employment Services to scale U.S. West Coast
NEW YORK and CALIFORNIA, UNITED STATES — In a move to expand its national footprint, PrestigePEO, a professional employer organization (PEO), has acquired California-based O2 Employment Services.
The acquisition marks PrestigePEO’s sixth such deal and significantly bolsters its presence in the complex western United States labor market by integrating a well-established local operator.
Strategic PEO acquisition to grow U.S. West Coast presence
Andrew Lubash, Founder and Chief Executive Officer (CEO) of PrestigePEO, notes, “The company’s strong leadership and talented team of professionals have built an impressive West Coast presence and reputation.”
O2 Employment Services was founded in 2001 and has established a good reputation among small- and mid-sized companies in California, a state with a complex, highly regulated labor market.
By making this its sixth acquisition, PrestigePEO demonstrates consistent growth through consolidation.
Integrating O2’s established client base and regional expertise enables PrestigePEO to offer its suite of national services to a new, pre-vetted market more efficiently than organic growth would allow.
This transaction directly enhances PrestigePEO’s ability to provide comprehensive outsourcing services nationwide from a position of localized strength.
“We look forward to joining forces to expand our service delivery to employers and brokers throughout the region,” Lubash said.
Heidi Pond, Co-founder and CEO of O2 Employment Services, adds, “Joining PrestigePEO allows us to scale that mission, expand our capabilities, and deliver even greater value to businesses in California and beyond.”
Stronger HR outsourcing and compliance capabilities
The acquisition combines PrestigePEO’s nationally recognized infrastructure with O2’s specialized regional proficiency, creating a more powerful service proposition for clients.
PrestigePEO brings elite industry credentials—including IRS CPEO status and ESAC accreditation—that assure financial and compliance security, alongside Fortune 500 employee benefits and advanced HR technology.
O2 is a service with 20 years of practical experience in assisting California companies to survive in the world of strict rules, labor shortage, and decreased claims on workers’ compensation.
As a single body, the entity would be placed to provide the employers with a higher level of outsourced HR. The customers of the merging entity will be able to enjoy the best of benefits and countrywide resources, while still benefiting from the sophisticated compliance-oriented support that is essential for running regulated businesses.
The move will offer a single solution to businesses in the U.S., especially in the West, to handle administrative burdens, reduce risks, and enhance operational efficiency by integrating HR, payroll, benefits, and compliance support services.
As Lubash concludes, “As PrestigePEO continues to expand organically and through acquisitions, this partnership is a powerful opportunity to align values and support employers operating in the country’s most heavily-regulated employment environments.”
