ECI Secures $40 Million Majority Growth Investment from Frontier Capital

Investment Demonstrates Confidence in ECI and Broader Human Capital Management Market

ELKHART, Ind.--()--Electronic Commerce, Inc. (ECI), a cloud-based, fully unified human capital management (HCM) platform for the entire employee lifecycle, today announced it has secured a $40 million majority growth investment from Frontier Capital. The investment will support ECI in enhancing its platform, providing resources to accelerate customer on-boarding and implementation, expanding sales and marketing efforts, and possible acquisitions to add new features to the platform to further meet the needs of its clients.

“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.”

Empower, ECI’s software-as-a-service platform, is a fully featured end-to-end solution designed to accommodate the HCM requirements of mid-size organizations. Featuring a unique single source cloud-based delivery platform, Empower offers a secure, unified database and world-class capabilities to cover the entire employee lifecycle from pre-hire to retire. ECI enjoys a 97 percent client retention rate across a strong base of middle market customers in numerous verticals, including 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 Capital is a growth equity firm focused exclusively on partnering with established software and technology-enabled business services companies, and 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.

“Over the last few years, we’ve watched the HCM/HR tech market and ECI specifically 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.”

In March, Frontier Capital announced the close of $390 million Fund IV, L.P. Frontier investments are used to fund both organic and acquisition-related growth initiatives and to provide meaningful shareholder liquidity.

About ECI

Specializing in human capital management solutions, ECI created its Empower software to provide mid-sized companies with a web-based, fully unified platform that covers the entire employee lifecycle. Users can seamlessly transition from one HR task to the next inside a secure, single database. Leveraging cloud-based, software-as-a-service (SaaS) deployment, single sign on access and a variety of user-friendly features, Empower delivers the ability to streamline communication, automate workflows and simplify the user experience across a full scope of employee administration requirements. Learn more at www.ecipay.com or call 800-320-9530.

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. We make minority and majority equity investments in high growth companies and have built an excellent track record of delivering returns to both our investors and management partners. For more information, please visit www.frontiercapital.com.

Release Summary

Electronic Commerce, Inc. has secured a $40 million majority growth investment from Frontier Capital to help enhance its human capital management (HCM) platform and expand sales and marketing.

Frontier Capital