Vancouver's Bench Accounting to be acquired by California-based HR tech company
Employer.com announces it will acquire company with over 600 employees that announced its closure Friday
A California-based HR tech company says it will acquire a Vancouver-based bookkeeping service that abruptly halted operations last week.
Bench Accounting announced its sudden closure on Friday, putting hundreds of staff out of work and forcing clients to seek alternatives just days from the end of the year.
Employer.com says in a statement it has been working with Bench customers behind the scenes to ensure a seamless transition.
The company says customers will continue working with the same in-house bookkeepers and that all of its data is intact, secure and protected.
Bench has previously said it had more than 600 employees and had received investor funding of $113 million US.
It said it moved to Vancouver and changed its name to Bench in 2013, having started out in 2012 as 10sheet Inc. in the U.S.
Other bookkeeping companies were quick to reach out to Bench's former clients after the announcement of its closure, with rivals such as Acuity and Better Bookkeeping making reference to Bench's closure in social media pitches.
Bench Accounting Chief People Officer Jennifer Bouyoukos says the firm is pleased to have found a home for many of its customers and employees.
Employer.com CEO Jesse Tinsley says his company is excited to build on Bench's legacy of being a "trusted partner to small businesses."
"While the challenges Bench recently faced were unexpected, we recognized an extraordinary opportunity to integrate their capabilities into our own suite of solutions," he said in the statement Monday.
"By combining forces, we can create even more value for Bench's loyal customers while extending the reach and impact of Employer.com's offerings."
5/8 Rather than continuing to fight with me, they opted just to just replace me, thinking that they could run the company better themselves. I was totally convinced that their approach would destroy the company. I opted to resign rather than fight. Because on the off-chance that…
—@ianwcrosbyBench's former CEO and co-founder, Ian Crosby, released a statement on social media after the closure was announced, saying he was "very sad" about it.
Crosby, who said he was ousted by the company's board about three years ago, said there was a lesson in the fate of the company.
"I hope the story of Bench goes on to become a warning for VCs (venture capitalists) that think they can 'upgrade' a company by replacing the founder. It never works," he said.