PALO ALTO, Calif., Dec. 8, 2020 /PRNewswire-PRWeb/ -- Escalon Services is revolutionizing how growing companies manage and consume Essential Business Services (EBS) like accounting, human resources, payroll, and insurance.
Today, it expands its customer base and its product offerings by announcing the acquisition of Early Growth Financial Services, the leading provider of CFO, accounting and tax services to venture-backed startups in the US and Europe. By doing so, the combined company becomes the largest and best-known EBS provider to customers in more than 40 countries.
"We are tremendously excited about this acquisition of Early Growth," said Anurag Pal, chief executive officer, Escalon. "We can not only use Early Growth's market-leading presence in the CFO space for our existing clients, but also significantly enhance the product coverage for all of our customers. We believe this acquisition means 2 + 2 = 22 for all concerned," said Pal.
"To facilitate this transaction, in addition to future opportunities, we provided credit facilities of up to $44.0 million," says Jim Wolf, Principal, WhiteHorse Capital. "We look forward to supporting the management team as they pursue their consolidation strategy in the EBS market for small and medium enterprises."
"EBS is a fragmented market," adds Ruby Sahiwal, chairman, Escalon Services. "We intend to consolidate it, leveraging the proprietary technologies developed since we launched our business 15 years ago."
A one-stop shop for startups and SMBs, Escalon has served more than 4,000 customers in 22 countries. Its revenues have logged a 40 percent compound annual growth rate since the firm was founded in 2006. In addition, the company has experienced a significant growth rate just over the last three years, helping deliver its standing as one of the country's fastest-growing businesses.
Early Growth is a 12-year-old company serving customers in over 40 countries. It, too, helps entrepreneurs through every step of establishing and running their business, including financial modeling and budgeting, billing and invoicing, day-to-day accounting, fundraising support and due diligence, board presentations, and IPO preparation. With a focus on venture-backed technology startups, 18 percent of all such companies have been supported by Early Growth at some point in their lifecycle. Its 125 employees have served 1,000 customers across multiple industries.
David Ehrenberg, chief executive officer, Early Growth, said, "This acquisition offers our customers a much expanded product offering across people operations and risk and will allow our customers the ability to stay with us for a much longer period of their lifecycle. I am delighted that this will enhance our core product offering while expanding the breadth of our solution to our entire customer base."
"At Escalon, our culture is built upon, among other things, 'MORE,'" said Pal. "Today's terrific news underscores that together with Early Growth, we can offer more to our customers, more synergies to each of our companies, and more to our employees. We believe in maximizing every employee's potential and are passionate about our customers' success."
About Escalon Services
Since 2006, Escalon has shepherded over 4,000 companies across many verticals and in 22 countries. We have helped businesses grow from one person in the garage to IPO and beyond, and we have been named to Inc. Magazine's Inc. 5000 list three times over the past four years. We provide a one-stop shop for the integrated solutions we call Essential Business Services (EBS). EBS gives clients a seamless, audit-ready solution for Financial Ops, People Ops and Risk.
About Early Growth Financial Services
Early Growth Financial Services provides accounting, CFO, tax, and valuation services, supporting 18% of privately-funded, venture-backed startup companies in the United States. With operations in Silicon Valley, San Francisco, Los Angeles, Austin, Chicago, Boulder, Seattle, and New York City, Early Growth's customers include Indiegogo, TechShop, Quip Inc., Live Love Polish, Japan Crate and 400+ other small- to mid-size businesses worldwide.
About WhiteHorse Capital
WhiteHorse is the direct lending affiliate of H.I.G. Capital, a leading global alternative investment firm with $39 billion of equity capital under management.* WhiteHorse provides debt financing to middle market companies across a broad range of industries, including business services, manufacturing, healthcare, technology, media and telecommunications (TMT), food/agriculture, and specialty finance. WhiteHorse has a broad investment mandate and provides senior and subordinated debt for refinancings, growth capital, acquisitions, buyouts, and balance sheet recapitalizations.
- Based on total capital commitments managed by H.I.G. Capital and affiliates.
Michelle Garrett, Garrett Public Relations, +1 614-315-4037, [email protected]
SOURCE Escalon Services