Seattle-based human resources software company PayNW is acquiring a division of Renewal, a Chattanooga, Tennessee-based human resources and benefits company.
PayNW is acquiring the human resources software division, what the companies call human capital management, of Renewal, while the benefits side of Renewal will continue on its own. PayNW CEO Lori Brown said the company is gaining four employees through the acquisition, which was announced Thursday.
"(Renewal) was really trying previously to do two things, and they discovered what they did really well was that benefits side," Brown said. "By partnering with somebody like us who does the (human capital management) side really well, then those clients can get the best of both worlds."
The companies aren't disclosing the financial terms of the deal. The four employees are moving into a new 400-square-foot PayNW office in Chattanooga in the same building where Renewal works now.
With the acquisition, PayNW now has 45 total employees, including 26 in the state of Washington. The company has a roughly 7,000-square-foot office in the RDA Building at 800 Maynard Ave. S. in the Chinatown International District. Brown said that because only a few employees actually use the office, PayNW is moving to a roughly 1,000-square-foot office in the same building. Brown added the company is targeting the end of 2022 for its move.
PayNW, founded in 2007, offers human resources software services like onboarding, payroll and performance reviews. The company has clients in education, banking and health care, among others.
Renewal, meanwhile, was founded in 2016. In addition to human resources software services, the company also helps clients with their benefits decisions. Brown said a major advantage of the acquisition is gaining an East Coast presence.
"One of the big pieces of the PayNW vision is going nationwide, and this is our first step in that nationwide move," Brown said. "It enables us to expand our service hours."
