IT Staffing Report: March 12, 2015

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Private equity picks up majority stake in ICon

Serent Capital acquired a majority stake in ICon Professional Services, a Foster City, Calif.-based provider of independent contractor compliance and payrolling services.

The transaction occurred early February; terms were not disclosed.

Icon Founder and CEO Patricia Griffin still holds a minority stake in the firm. She plans to retire in about four months but will remain with the firm in an advisory role. Dana Shaw, currently the COO, will transition to the role of president.

“I will ensure that ICon will continue to focus on providing solutions that protect our clients from the risks and consequences of misclassifying their independent workforce,” Griffin said. “Independent contractors are outgrowing traditional ‘temps’ by three to one in the new workforce and this trend will change the way employers will access and structure their much-needed talent. It will be more critical than ever to meet taxing authority guidelines to avoid costly fines and penalties.”

Griffin, who ranks on the Staffing 100 list of most influential people in the staffing industry, founded ICon in 1997. The company is projecting over $100 million in revenue in 2015.

“Serent’s growth capital and deep business building experience will help us turbo-charge our niche solution to become a household name in independent contractor compliance and professional payroll services,” Shaw said.

Serent, a San Francisco-based private equity firm, early last year invested in Avionté Inc., a provider of front- and back-office software to the staffing industry.