Gusto Acquires Guideline For $600M, Plans Customer Divestment
Gusto paid $600M to acquire Guideline, plans to divest customers linked to rivals.
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Gusto Acquires Guideline For $600M, Plans Customer Divestment
Sources: Gusto Paid $600M To Acquire Guideline, Plans To Divest Customers Linked To Rivals Last month, Sources confirmed Gusto paid $600M to acquire Guideline, plans to divest customers linked to rivals as part of the deal. Gusto, the payroll and HR software giant, aims to expand its benefits offerings while avoiding conflicts with competitors. Image Credits:Guideline The acquisition brings Guideline’s retirement plan technology under Gusto’s umbrella, but the company plans to offload customer relationships tied to rival payroll providers. This strategic move signals how competitive the HR tech space has become. Why Gusto Acquired Guideline For $600M Guideline, founded in 2015 by TaskRabbit co-founder Kevin Busque, helps small and medium-sized businesses set up and manage 401(k) plans. Unlike traditional providers, it charges a flat, per-employee fee instead of taking a percentage of assets under management. At the time of its last funding in 2021, Guideline was valued at $1.15 billion. Whi…
