VidGrid, a Twin Cities tech startup that makes business software for creating and sharing videos, has been acquired by Paylocity, a Schaumburg, Ill.-based company providing HR and payroll software solutions.
Both companies will retain their leadership teams and VidGrid's headquarters will remain in St. Paul. Other terms of the deal were not disclosed.
Paylocity said in a statement that it has worked with VidGrid for several years to deliver a video learning management system to its clients. The company expects video to play an important role in their organization as more employees expect remote work opportunities and flexible learning environments. Paylocity will use VidGrid's platform to enhance communication, engagement and connections throughout its workforce.
"As part of our product expansion, we introduced our learning management system and worked with VidGrid to provide learning opportunities that the modern workforce expects," Paylocity CEO Steve Beauchamp said in a release. "VidGrid's approach aligns with our culture of caring deeply for our clients and we couldn't be more excited to welcome their talented and innovation team to Paylocity."
Founded in 2012 as ilos videos, VidGrid is among the 25 largest SaaS companies in the Twin Cities, according to the Minneapolis/St. Paul Business Journal. It was also one of Minne Inno's Coolest Companies in 2019.
Businesses use VidGrid's technology to quickly create and manage videos. Users can communicate and collaborate about a variety of topics such as sales, customer success, training and education. The platform is used by large companies and institutions such as Fox, G2 Crowd, Duke University and the University of Nebraska.
VidGrid raised around $3 million prior to its acquisition. Its last round was in 2017 when the company secured $1.5 million in a round led by Austin, Texas-based Active Capital.
"We couldn't be more proud to join forces with a company like Paylocity," Nick Stokman, VidGrid co-founder and CEO, said in a statement. "The Paylocity team shares our vision that video has the power to shape the future of workplace communication and we're looking forward to driving collaboration for organizations everywhere."
