BOSTON, MA, — Riverside Partners, LLC, a Boston-based private equity firm, announced today that it has completed a majority equity investment in Contractor Management Services LLC (“CMS” or the “Company”). CMS is the leading provider of compliance software and payment settlement services for independent contractor work forces. CMS offers its services through Cloud-based solutions that enable contracting companies to pay independent contractors as well as track, document and facilitate compliance with the complex regulatory, legal and tax requirements associated with the use of independent contractors. The Company is based in Phoenix, Arizona. Financial terms of the transaction were not disclosed.
“We are excited to partner with CMS and look forward to fueling its continued growth,” said Steven F. Kaplan, General Partner at Riverside Partners. “CMS provides essential solutions to a large and growing base of contracting companies and independent contractors across multiple end markets. CMS' technology-based approach is highly differentiated, and the Company's software solutions directly address both the payment settlement requirements as well as the increasingly complex compliance needs of its clients.”
“I am thrilled with the success we have achieved at CMS,” said Dennis Roccaforte, founder of CMS. “The investment by Riverside Partners is a testament to the company we have built and I firmly believe that this partnership will enable us to fulfill our vision of helping contracting companies to engage, contract with, administer and pay independent contractors and allowing workers the freedom and flexibility of being independent contractors.” Mr. Roccaforte will continue to serve on the board of directors and remains a significant owner in the Company.
CMS’ technology-based approach is highly differentiated, and the Company's software solutions directly address both the payment settlement requirements as well as the increasingly complex compliance needs of its clients. Steven F. Kaplan General Partner, Riverside Partners
E. Patrick LaVoie, who will continue to run the Company as its Chief Executive Officer, said, “CMS has experienced rapid growth over the past several years, and our goal is to continue along that trajectory.” Mr. LaVoie added, “We chose Riverside Partners because of their experience investing in and growing leading technology-based services companies. We expect that our partnership with Riverside Partners will allow us to continue our innovation around the new gig economy, expand our technology-based service offerings and accelerate our growth while continuing to meet and exceed our customers' needs."
Michelle Noon, Partner at Riverside Partners, commented, “The Company's unique and innovative software platform will enable it to scale efficiently, and we look forward to assisting CMS in expanding its role as a leader and innovator in the space.”
About Riverside Partners LLC
Founded in 1989, Riverside Partners is a middle market private equity firm currently investing Riverside Fund V, L.P. The fund focuses on growth-oriented companies primarily in the technology and healthcare sectors. Riverside Partners is particularly experienced at partnering with founders, owners and management teams and it brings substantial domain expertise and operating experience to its portfolio companies. Today, Riverside Partners manages $1 billion of equity capital and seeks to make investments in companies with revenues between $20 and $200 million and with $5-$25 million of EBITDA. For more information, please visit www.riversidepartners.com.
About Contractor Management Services LLC
Since 2001, Contractor Management Services has been the nation's leading independent contractor management solution provider with a proven track record of addressing the compliance needs of its contracting company customers. Since its founding, CMS has worked with hundreds of contracting companies and tens of thousands of independent contractors throughout North America. CMS continues to lead the industry with its highly effective ICM Power(TM) Solutions that allow both contracting companies and independent contractors to Stay Connected. Stay Compliant. Stay Contracted. www.ICMpower.com
Riverside Partners Contact:
Steve Kaplan
General Partner
617-351-2820
skaplan@riversidepartners.com