AlphaStaff Group, Inc., of Ft. Lauderdale has executed an agreement with Selective Insurance Group, Inc., to acquire its Sarasota, Fla.-based PEO subsidiary, Selective HR Solutions, Inc. Closing, subject to Florida regulatory approval, is expected to occur on or around Jan. 1, 2010.
Jay Starkman, AlphaStaff's CEO and a board member of the National Association of Professional Employer Organizations, noted that a key factor in the deal was the vast potential to increase sales by offering AlphaStaff's product and commission structure to Selective Insurance's 900-plus agents.
"Through this acquisition, AlphaStaff becomes the only PEO to distribute its product exclusively through the insurance agent channel," said Starkman.
After the close, AlphaStaff expects to add approximately 20,000 worksite employees to its current roster of 50,000. The company already has a presence in Florida, Georgia, Texas, California, New York, and New Jersey. The deal will expand its reach to North Carolina, South Carolina, Maryland, Virginia, and Tennessee.
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