BRADENTON, Fla., Feb. 19, 2007 (PRIME NEWSWIRE) -- Gevity (Nasdaq:GVHR), which serves as the full-service human resources department for small and mid-sized businesses, announced today the acquisition of HRAmerica, Inc. This acquisition provides Gevity with scalable technology to enhance its non-coemployment model, Gevity Edge Select(tm). HRAmerica is an HR outsourcing firm that offers fundamental employee administration solutions such as payroll processing and manager self-service to approximately 75 clients and 16,000 client employees.
"HRAmerica's robust and scalable engine provides a foundation with which we can support growth in Gevity Edge Select. In this non co-employed environment, we will broaden our target market while improving the quality and predictability of our earnings," commented Erik Vonk, Gevity's Chairman and Chief Executive Officer. "While the client portfolio of HRAmerica fits the profile of those businesses who could benefit from Gevity's broader comprehensive offering, the key reason for the transaction is to acquire the processes and technology to support our growth."
"HRAmerica has enjoyed substantial growth since being founded in 1998. The integration of our technology into the Gevity Edge Select model will provide a compelling case for even greater expansion into the small and middle market," commented Heath Byrd, HRAmerica's Chief Operating Officer. "Gevity's sound infrastructure and dynamic operations will provide HRAmerica's clients and employees with the exceptional support they have come to expect."
This cash transaction, valued at approximately $10 million, is expected to be non-dilutive to Gevity's 2007 results. The purchase price includes a payment of $0.5 million for a small number of coemployed HRAmerica clients, which is subject to state regulatory approval.
The strategic significance of providing Gevity's comprehensive HR services on a non co-employment environment is detailed in Gevity's Vision on the Investor Relations section of gevity.com.
About Gevity
Thousands of small and mid-sized businesses nationwide leverage the flexibility and scalability of Gevity's Human Resources (HR) solution to help them maximize the return on investment in their people. Essentially, Gevity serves as the full-service HR department for these businesses, providing each employee with support previously only available at much larger companies.
Gevity delivers the Gevity Edge(tm), a comprehensive solution comprised of innovative management and administration services, helping employers to streamline HR administration, optimize HR practices, and maximize people and performance. This solution enables both businesses and their employees to achieve their full potential, giving them an edge over competitors.
Gevity's unique approach features Gevity OnSite(tm), experienced HR Consultants based in local markets backed by nationwide resources and easy-to-use technology, including Gevity OnLine(tm) and Gevity OnCall(tm). For more information, visit gevity.com.
A copy of this press release can be found on the company's Web site at www.gevity.com.
Pursuant to the Private Securities Litigation Reform Act of 1995, the company is hereby providing cautionary statements to identify important factors that could cause the company's actual results to differ materially from forward-looking statements contained in, or implied by, this press release.
Forward-looking statements are those that express expectations, beliefs, plans, objectives, assumptions or future events or performance that are not historical facts. They are often expressed through the use of words or phrases such as "will result," "are expected to," "anticipated," "plans," "intends," "will continue," "estimated," "projection," "preliminary," "forecast" and similar expressions. The results or events contemplated by forward-looking statements are affected by known and unknown risks that may cause the actual results of the company to differ materially from any future results expressed or implied by such forward-looking statements. Many of these risks are beyond the ability of the company to control or predict, such as risks relating to the following: to the company's guidance, including the challenges to achieving the company's growth strategy in general, gaining new client employees while passing on increased pricing, increasing professional service fees, resolving issues with the multi-carrier choice program, retaining clients through annual benefit enrollment, penetrating the middle market and opening new geographic offices, and its long-term performance standards, our dependence on technology services, the adequacy of our insurance-related loss reserves, the availability of insurance coverage for workers' compensation and medical benefits, damage due to hurricanes and other natural disasters, risks inherent in our acquisition strategy, our dependence on third party technology licenses, our dependence on key personnel, qualified service consultants and sales associates, fluctuations in our quarterly results and sustaining our growth, variability in health insurance claims, state unemployment tax rates and workers' compensation rates, liabilities resulting from our co-employment relationship with our clients, credit risks of our large clients, short termination provisions in our professional services agreements, our geographic market concentration, collateral requirements of our insurance, regulatory compliance, Internet and related security risks, potential liabilities due to potentially being an "employer" due to ERISA and tax regulations and litigation, challenges to expansion due to varying state regulatory requirements, competition and risks relating to recovering insurance premiums paid to a Bermuda reinsurance company. These and other factors are described in the company's filings with the Securities and Exchange Commission, including under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Annual Report on Form 10-K. Any forward-looking statement speaks only as of the date on which such statement is made. The company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made.