Private equity firm CIP Capital acquired professional employer organization CoAdvantage Corporation. The company ranks No. 12 on Staffing Industry Analysts’ 2012 list of largest PEOs.

“CoAdvantage’s business model represents a core focus of CIP Capital’s targeted middle-market investment strategy in the business information and outsourced services market,” said Scott Marden, managing partner of CIP Capital. “We believe adoption of the PEO model by small businesses will continue to increase based on the ever changing compliance and regulatory environment.”

CoAdvantage also announced plans to enter the Palm Beach, Fla.; Austin, Texas; and San Antonio, Texas markets early this year.

CoAdvantage had previously been merged with another PEO operation in April 2011.