Kelso Fund IX Exits Investment in Oasis Outsourcing
December 21, 2018
Kelso is pleased to announce that on December 21, 2018, Oasis Outsourcing closed the transaction to sell the Company to Paychex, Inc. Oasis is the largest privately held Professional Employer Organization in the U.S., serving small-and-medium sized businesses in all 50 states and Puerto Rico. Oasis primarily provides full-service payroll administration, employee benefits plan management, workers' comp insurance, and risk management, while also offering other ancillary services such as employee lifecycle management. The Company serves over 8,400 clients and over 265,000 Worksite Employees across a wide range of industries.
Kelso’s investment in Oasis was a proprietary transaction that was facilitated by the firm’s targeted and multi-year focus on the Professional Employer Organization sector and existing relationships with Oasis management and Stone Point Capital (Kelso’s partner in the Oasis investment). Kelso’s investment thesis was predicated on identifying multiple value creation levers (operational improvements, increased organic growth, accelerated M&A, and opportunity to exit to a strategic). During Kelso’s 18 month investment period, the Company achieved our objectives and grew EBITDA from $68.3 million to $84.9 million. Key drivers were strong organic growth and successful execution of the Company’s M&A strategy. Oasis’ increased scale, leading market position, and best-in-class management team positioned the Company as a highly attractive acquisition target, resulting in a successful exit to a strategic acquirer.