Payroll Giant Paychex Buys Florida-Based Developer of Attendance Systems
April 14, 2004 7:18pm
Knight-Ridder / Tribune Business News
Apr. 14--Stromberg LLC, the Lake Mary, Fla.-based developer of time-and-attendance systems headed by Newburgh, N.Y., native Seth Bernstein, has been acquired by payroll giant Paychex Inc.
Paychex announced the deal early yesterday, but did not disclose the price paid for privately held Stromberg.
Bernstein will stay on as president and chief executive officer of Stromberg, which will operate as a division of Paychex, the Rochester-based payroll company headed by Tom Golisano.
"We're really going to run as a separate entity," Bernstein said. "We've gotten some significant capital to grow the organization, so I'm pretty excited."
Stromberg develops automated systems for tracking employee attendance. It's a rapidly evolving industry driven by technology. Biometric terminals, for instance, identify employees by unique characteristics such as finger shape. The deal gives Stromberg access to Paychex's 1,600 sales reps.
In October, Paychex bought Time in a Box, an attendance product developed by Stromberg. The negotiations leading to that deal eventually morphed into acquisition talks, which wrapped up Friday afternoon in Rochester.
Bernstein, 28, is a 1994 graduate of Newburgh Free Academy. He dropped out of college at 19 and took a sales job with ADP, a payroll and human resources administration company, where he quickly excelled.
He bought into Stromberg in December 2002 and has tripled the company's work force. Bernstein, already a multimillionaire, will profit handsomely from the deal with Paychex. He declined to provide specifics of his compensation, but noted that about 30 of Stromberg's 85 employees owned stock in the company, and will benefit from the deal as well.
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Copyright © 2004 The Times Herald-Record, Middletown, N.Y. Distributed by Knight Ridder/Tribune Business News.
hoovers.com
There ya go Pappy ;-)
steve |
