Private equity firm GPB Capital Holdings LLC purchased a majority stake in MatrixOneSource, a PEO based in Jacksonville, Fla. The deal marks New York-based GPB’s first foray into the PEO sector, and creates a platform in which to integrate possible future acquisitions.

“The investment in MatrixOneSource, which closed at the beginning of the year, with its strong and tenured management team and proven record of success, creates a PEO platform in the Southeast into which the firm can integrate ‘tuck-in’ acquisitions going forward,” said Abhaya Shrestha, managing director at GPB Capital responsible for the firm’s business services strategy.

Just 3% of US companies with fewer than 100 employees use PEOs, according to GPB, citing statistics from the National Association of Professional Employer Organizations. This means PEOs have room to grow.

“Many small and medium-sized businesses do not have the resources to support a full-time human resources staff. PEOs serve as a vital partner to these organizations, helping them comply with the everchanging myriad of Federal and State regulatory requirements,” Shrestha said. “The combination of GPB Capital and MatrixOneSource will create a regional PEO platform which can offer a robust suite of human resources and administrative services to small and medium sized, growth-focused companies at a time when employment regulations continue to evolve and increase in complexity.”

MatrixOneSource serves more than 700 companies and has a team of 14 business development managers spread across Florida.