Earlier this morning, global Vendor Management System (VMS) and Extended Workforce Management Platform Beeline announced that the company received a majority investment from funds managed by Stone Point Capital, a leading private equity firm based in Greenwich, CT. New Mountain Capital, existing investor, will remain a minority investor in the solution, and will maintain representation on the company’s board of directors.
The acquisition represents an ideal scenario for the industry’s largest independent provider of workforce management technology, as the move will allow Beeline and its team to execute on a progressive roadmap and introduce new and innovative solutions in a market dominated by Future of Work accelerants.
“New Mountain was a great home for us and we appreciate the opportunity to continue to partner with them,” said Beeline’s CEO, Doug Leeby. “We are thrilled to be part of the Stone Point Capital family; I’m confident that their support will allow us to follow through on our long track record of innovation and growth in this exciting industry.”
The move will allow Beeline to continue operating as the largest independent extended workforce/VMS technology solution, as well as serving as a catalyst for the company to enhance the way its customers find, engage, source, and managing the growing and evolving non-employee workforce.
The Future of Work Exchange highlights the following in its instant analysis:
- Extended workforce management technology is a must-have in a “Great Resettling”-fueled business world. Ardent Partners and FOWX research have found that 47% of the average company’s workforce is considered non-employee, a figure that is expected to grow in 2022. Beeline already has a long track record of success, however, the strategic investment will enable them with even more support to continue the platform’s global scalability, especially considering the new influx of extended talent that will be entering the market as “The Great Resignation” continues.
- Beeline will become a major player in the acquisitions market. The workforce solutions ecosystem has never been more robust: talent marketplaces, digital staffing outlets, direct sourcing platforms, and progressive point tools (i.e., candidate assessment and skills validation) are all critical pieces of the Future of Work puzzle. Beeline will have the capabilities to increase its acquisition activity, perhaps by building on moves such as what they did last year with the JoinedUp acquisition.
- A major strategic investment = more runway to build on the role of VMS in the Future of Work. We know the story by now: VMS was once considered “eProcurement for staffing” until the contingent workforce grew in size and strategic prominence. Today, it’s a vaunted enterprise solution that serves as the nexus of all things related to independent talent. Beeline’s VMS and extended workforce platform is well-positioned to help its clients thrive in a Future of Work-led world with this investment, as it can build on its unique functionality in a way that supports progressive ideas, such as remote talent acquisition and hybrid work augmentation.
- Data-centric enterprise technology computing will be enhanced across Beeline’s product offerings. The Stone Point investment means that Beeline can devote more R&D to intelligence-fueled functionality and enable its user base to make more data-oriented talent decisions. Data sits at the center of talent engagement and talent acquisition today, and in response, FOWX believes Beeline will continue to invest in its intelligence capabilities to bring more insights into all pieces of the end-to-end workforce spectrum.
“The extended workforce is a critical facet of the Future of Work movement,” said Leeby. “As this workforce grows and evolves, Beeline will continue to do so in parallel. With Stone Point behind us, we have an opportunity to innovate around the unique needs of today’s workforce and provide solutions that can help our customers succeed in a transformative world of work and talent.”
