Miami, FL (PressExposure) October 29, 2009 -- AlphaStaff Group, Inc., one of the nation's fastest-growing professional employer organizations (PEO), today announced it has executed an agreement with Selective Insurance Group, Inc., (Nasdaq: SIGI) to acquire its Sarasota, Fla. based PEO subsidiary, Selective HR Solutions, Inc. When the transaction is completed, AlphaStaff is expected to become one of the nation's largest professional employer organizations. Closing is subject to Florida regulatory approval and is expected to occur on or around Jan. 1, 2010.
AlphaStaff offers a flexible suite of services that focuses on human resources, including HR administration and consulting, benefits administration, workers' compensation coverage and safety management, payroll and integrated technology solutions, and tax administration, among others.
"Selective HR's model of collaboration with insurance agents aligns perfectly with ours," said Jay Starkman, AlphaStaff's CEO. "Through this acquisition, we not only continue our stellar growth record, but AlphaStaff becomes the only PEO to distribute its product exclusively through the insurance agent channel, a format proven to deliver superior customer service and affordable benefits."
Starkman noted that a key factor in the deal was the vast pontial to increase sales by offering AlphaStaff's robust product and commission structure to Selective Insurance's over 900 agents. AlphaStaff will be the only PEO partnering with the insurance subsidiaries of Selective Insurance Group, Inc. for workers compensation insurance pursuant to the terms of the agreement.
After the close, AlphaStaff expects to add approximately 20,000 worksite employees (WSEEs) to its current roster of 50,000. The company already has a presence in Florida, Georgia, Texas, California, New York and New Jersey and the deal now expands its reach to North Carolina, South Carolina, Maryland, Virginia and Tennessee.
"We believe AlphaStaff is a good fit for Selective HR clients and agent partners," said Gregory Murphy, Chairman, President and CEO of Selective Insurance Group. "We selected AlphaStaff to partner with because, like us, they're committed to the agent channel."
Current Selective clients should see no changes in their costs throughout 2010. Selective HR Solutions clients are expected to enjoy access to AlphaStaff's more sophisticated HR technology that provides greater reporting capabilities and increased employer and employee self-service.
Along with their shared commitment to working through the agent channel, both companies are among the few PEOs that are Employee Services Assurance Corporation certified. Benefits of ESAC include constant audits and monitoring, as well as offering clients the protection of a surety bond in the unlikely event of a failure of an accredited PEO.