Frontier Capital Completes $40 Million Majority Investment in Human Capital Management Software Provider
Investment in ECI Is First from $390 Million Fund; Fifth Investment in HCM-focused Companies
CHARLOTTE, N.C.– June 4, 2015–Frontier Capital, a growth equity firm focused on established software and technology-enabled business services companies, today announced a $40 million majority growth investment in Electronic Commerce, Inc. (ECI). This investment represents the first from Frontier’s $390 million Fund IV, L.P. and the fifth recent investment in HCM-focused companies.
ECI, based in Elkhart, Indiana, offers a cloud-based, fully unified human capital management (HCM) platform for the entire employee lifecycle. The company will use the funds to:
- Continue the enhancement of its platform and provide more resources to accelerate customer on-boarding and implementation of the solution
- Expand sales and marketing efforts
- Potentially acquire related companies to add new features to the platform
“Over the last few years, we’ve watched the HCM/HR tech market and ECI show impressive growth,” said Richard Maclean, managing partner, Frontier. “The continued strong demand for ECI’s platform, along with our solid relationship with the ECI management team, makes us confident that the capital and strategic expertise we’re providing will enable the company to grow at a pace necessary to meet demand.”
Empower, ECI’s software-as-a-service (SaaS) platform, is a fully featured end-to-end solution designed to accommodate the HCM requirements of mid-size organizations. The company enjoys a 97 percent client retention rate across a strong base of middle market customers in verticals such as manufacturing, non-profits, financial services, healthcare and retail.
“Mid-size companies are realizing the benefits of anytime, anywhere access to HR data and technologies via the cloud to manage and streamline the employee lifecycle, with significant boosts to productivity and cost savings over manual and paper processes,” said Jeff Lacy, president and CEO, ECI. “After getting to know the Frontier team, and seeing their success in the HR tech industry, we have no doubt that our partnership will help us better meet the increasing demand we’re experiencing.”
Frontier has developed deep domain expertise within the HCM software and services sector. In addition to ECI, Frontier is currently invested in four other HCM-focused companies: WilsonHCG, talentReef, Celergo and eVerifile.
About Frontier Capital
Frontier Capital is a Charlotte-based growth equity firm focused exclusively on software and technology-enabled business services companies. Founded in 1999, Frontier partners with management teams that can benefit from capital to accelerate growth, fund acquisitions or generate shareholder liquidity.