The management buy-out (MBO) was led by Inflexion Private Equity, the mid-market private equity investor.
Inflexion says it is particularly impressed Parasol’s scaleable IT infrastructure, which allows the firm to process high volumes of transactions at a low cost.
Parasol is the largest pure PAYE umbrella business in the UK, and handles the salaries of over 6,500 flexible employees.
Self-employed workers represent 13% of the UK workforce and this figure to rise to 20% in the next four years, Inflexion say.
Rob Crossland, founder and managing director of Parasol, said: "Inflexion has recognised the potential in the business and with the benefit of their financial support and investment experience, we are delighted to be able to enter the next stage of the company's development."
Inflexion has invested £9.4m for a majority in the business, and has installed Andrew Mainwaring and John Hartz onto the company’s board.
Inflexion sourced the transaction off-market and negotiated directly with the shareholders who were advised by Jonathan Ballard of Ballard Campbell. Parasol’s management team has also invested significantly and HSBC has provided finance worth £12m.
As a result of the MBO the company believe they will be able to enhance and expand its services.
© Crimson Business Ltd. 2006