Gusto, a cloud-based HR management software, just announced plans to acquire Arizona-based tax-software company Symmetry. This is the $3.8 billion fintech startup’s second acquisition this summer.
The deal, which is expected to close later this month, is meant to allow Gusto to build out its existing small business-focused software.
Symmetry is used by employers including ADP, AT&T and Walmart, and serves almost 40% of the U.S. workforce. Gusto has even used Symmetry since 2012.
Symmetry, which was founded by Tom Reahard in 1984, helps companies calculate withholding on employees’ paychecks, in an effort to decrease the amount of penalties small businesses pay to the IRS every year for inaccuracies in taxes.
Tomer London, co-founder and chief product officer at Gusto, told Business Insider that Gusto wants to help decrease the number of fines that businesses pay and the number of payroll errors made.
This acquisition won’t impact any of Symmetry’s customers or business lines — Symmetry will continue to operate independently, with all 43 employees joining Gusto. Symmetry CEO Elizabeth Oviedo will stay on as CEO and report to London. Reahard will serve as chairman.
Gusto will integrate further and enrich its own tax withholding software, with the help of Symmetry’s tech and data.
Gusto and Symmetry plan to introduce alerts sent to employers ahead of tax code changes, and assist employers with managing specific tax codes.
Symmetry’s tech will also boost the value proposition of Gusto’s new embedded payroll play that was announced late last month.
Gusto saw 50% growth in the 2020 fiscal year that ended in April. The company has raised $516.1 million in funding to date.