Seattle-based PayScale has merged with fellow compensation data firm Payfactors.
The combined company is retaining the PayScale name and will be based in Seattle, a PayScale spokesperson said. Terms of the tie-up, which closed Monday, were not disclosed. The spokesperson declined to reveal the revenue of either firm or say if they were profitable.
PayScale, founded in 2000, provides compensation data to workers and businesses. Payfactors, founded in 2013 and based in suburban Boston, competed directly with PayScale.
The combined company has 10,000 customers — including more than half of Fortune 500 companies — and salary information for more than 10,000 jobs, according to a news release. It has more than 600 employees, the PayScale spokesperson said; PayScale had 450 of those, according to PitchBook. As the companies merge operations, the PayScale spokesperson said, “there will be new jobs created and some redundancies that lead to the elimination of positions.”
Combining the two companies “creates the optimal set of capabilities to offer faster paced innovation to get pay right today and in the future,” PayScale CEO Scott Torrey said in a news release.
Torrey will be the CEO of the combined company; Payfactors CEO Jeff Laliberte is becoming its chief strategy officer and joining the PayScale board.
Silicon Valley private equity firm Francisco Partners, which has been PayScale’s majority owner since April 2019, will be majority owner of the combined company, the PayScale spokesperson said.
The merger follows PayScale’s acquisition of Denver-based competitor MarketPay in 2016.