A Henrico County-based startup that develops technology to help people make better health insurance and benefits choices has been acquired in a deal that will provide its services to many more businesses and their employees.
Clearview Logix, with four full-time employees, was acquired this month by Ceridian, a large technology company based in Minneapolis and Toronto that provides human resources management software such as the payroll reporting system Dayforce.
Ceridian has about 3,200 employer customers with millions of employees who use its service. The company plans to integrate Clearview Logix’s tools with its own.
Financial terms of the deal were not disclosed.
Tim O’Shea, Clearview Logix’s chief executive officer, said the deal will bring resources to support further business growth for the company.
Clearview Logix was founded in late 2013 by O’Shea and Larry Colley, who had professional backgrounds in the insurance and benefits industry. Colley and O’Shea had previously founded the employee benefits consulting firm Dominion Benefits, which they sold before founding Clearview Logix.
Clearview Logix builds analytics models to simplify health insurance choices for employees and employers.
It has grown by adding local clients such as the University of Richmond, Elephant Insurance, Williams Mullen, Sycom Technologies, Collegiate School, St. Christopher’s School and Westminster Canterbury, along with customers nationwide such as The New York Times, Vanderbilt University and AMC Theatres.
“We were growing rapidly, and to address and serve that growth, we were going to have to add significant staff to take things to another level,” O’Shea said. “Our company was bootstrapped. We did not have outside investors. We built it over five years with our own cash investments and deferral of income.”
With the acquisition, “we felt we could continue down the growth path but also have the resources of a big organization like Ceridian,” he said.
Clearview Logix will remain based in Henrico and will maintain its current client list, O’Shea said.
Ceridian’s business is built around its core service in payroll reporting, but “like a lot of HR technology companies they are expanding beyond core administrative services into things that really automate the entire HR experience for employees,” O’Shea said.
The acquisition grew from a partnership that Clearview Logix formed with Ceridian in 2018. “Their evaluation and interest in selecting us as a partner last year was a big validation of what we had built,” O’Shea said. “They looked at all the options across the country – a lot of different firms – and they selected us.”
Besides O’Shea, the management team also consists of Colley, its chief product officer who leads its algorithm development; Allen Hatzimanolis, its chief technology officer; and Aujang Abadi is director of strategic partnerships.
Ceridian announced the deal along with a separate acquisition of some assets of Paysa, a California-based personal career advisor powered by artificial intelligence.
“Ceridian will fully integrate the technology of these two acquisitions within Dayforce to help our customers attract, engage and develop the very best people, while saving costs and reducing the administrative burden,” said David Ossip, chairman and CEO of Ceridian, in a statement.