The Backstory: Two Companies Shaping the Future of HR and Accounting
Bench, based in San Francisco, was a VC-backed accounting and tax software startup that operated until December 27. Meanwhile, Employer.com focuses on payroll and onboarding solutions. The两家公司 have distinct missions: Bench specializes in accounting and tax services, while Employer.com offers tools for managing employee records.
A Soft Close Down: Bench’s Downfall
Bench’s shutdown last week caused chaos for its customers, many of whom are small business owners in the U.S. According to an archived copy of the company’s website at the time of writing, Bench previously listed more than 35,000 "American small business owners" on its platform. Employer.com confirmed that Bench has approximately 12,000 active customers as of post-publication.
Bench’s website currently states: "More information on how to continue your services will be available soon." The abrupt termination of the company caught many off guard, with customers finding themselves locked out of their accounts just as tax season is about to begin. TechCrunch reports that emails sent to Bench employees bounced back, adding to the confusion.
The Acquisition Deal
TechCrunch has exclusively learned that Employer.com will acquire Bench for an undisclosed price in a last-minute deal. The deal was finalized under tight deadlines, with both companies confirming their commitment to streamline operations and enhance services after the merger.
Key Points of the Deal:
Strategic Synergy: Both companies aim to expand their market reach by combining their expertise in payroll management, onboarding processes, and accounting software.
Customer Experience: The acquisition is expected to provide a seamless experience for existing and new customers, offering integrated tools for managing employee records, accounting tasks, and compliance requirements.
Post-Acquisition Plans
Both companies have outlined plans to integrate their systems seamlessly. This integration will aim to reduce operational costs while enhancing the overall customer experience. Key initiatives include:
Unified Platform: A single platform that combines payroll management, HRIS (Human Resources Information System), and accounting software into one cohesive solution.
AI-Powered Insights: Leveraging artificial intelligence to provide predictive analytics for payroll trends, employee engagement metrics, and compliance risks.
Financial Impact
While the acquisition is valued at an undisclosed amount, both companies have emphasized their focus on long-term growth. Employer.com’s commitment to acquiring Bench reflects its strategic intent to expand into new markets while maintaining a customer-centric approach.
Key Figures in the Deal:
Bench: Founded in 2018 by Alex Moe and Peter Slensen, Bench was backed by Kleiner Perkins and other investors. The company aimed to revolutionize the way small businesses handle their financials.
Employer.com: Headquartered in San Francisco, Employer.com has been a leader in payroll software for over a decade. Its focus on simplifying employee management has attracted thousands of users across various industries.
The Future of HR and Accounting
The acquisition marks a significant milestone in the evolution of small business software solutions. By combining Bench’s expertise in accounting with Employer.com’s leadership in payroll management, both companies are poised to redefine how businesses handle their financial and HR operations.
Key Takeaways:
Customer Focus: Both companies prioritize customer satisfaction as they work towards creating a seamless experience for small business owners.
Innovation: The integration of AI and advanced analytics will drive innovation in payroll and HR software, offering businesses more insights and tools to manage their operations efficiently.
Strategic Synergy: The merger is expected to create significant cost savings while expanding the product offerings across both companies’ portfolios.
Conclusion
Bench’s acquisition by Employer.com marks a pivotal moment in the small business software landscape. While the company’s abrupt shutdown caused disruption, the strategic integration of both businesses promises to deliver value to customers and stakeholders alike. As the new chapters unfold, it will be interesting to see how the combined entity navigates the evolving needs of small business owners.
