The two companies, PayScale CEO Mike Metzger says, have complementary technologies, so it made sense to combine them.
Seattle-based PayScale, continuing to go through a growth spurt, has acquired fellow compensation tracker MarketPay.
Terms of the deal were not disclosed.
PayScale, which provides compensation data to both workers and businesses, will take in MarketPay’s 65 employees, while planning to hire about 30 more people throughout the year. The combined company would have about 380 employees and 5,000 customers.
PayScale CEO Mike Metzger said the combination made sense because the two offer complementary technologies.
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Denver-based MarketPay, which will maintain its offices in the city, developed a software system that helps large companies look at a broad range of market surveys about compensation to decide what to pay employees. It has about 650 customers, including 200 in the Fortune 1000.
PayScale provides salary and benefit data to small and midsize businesses. It gathers data from businesses and workers and compiles the data to sell to companies.
“We are complementary in terms of functionality,” Metzger said. “We don’t have any survey-management software, and they don’t have any data.”
PayScale is majority-owned by investment firm Warburg Pincus, which poured $100 million into the company in April 2014. With Thursday’s acquisition, MarketPay will become a subsidiary of PayScale.
PayScale has been booming in Seattle since Warburg’s investment and moved into a larger space last year in the former Jones Soda office, near the sports stadiums south of downtown.