TriNet Group helps clients focus on the bottom line. The firm provides employer and human resources services to about 8,000 small and midsized growth companies (with 10 to 500 employees) throughout North America. Clients primarily come from the financial, technology, and non-profit industries. TriNet offers administrative and human resources services, handling talent acquisition, payroll, benefits, and related functions such as managing health care plans, evaluating work performance, and running corporate Web portals. It also runs a Web-based HR portal through technology from Oracle. Founded in 1988, TriNet in 2014 began trading on the New York Stock Exchange.
The company raised $240 million in its IPO. It is using the proceeds to pay down debt, enhance its financial flexibility, and create a public market for its stock.
Based in the San Francisco Bay area, TriNet has offices across the US and in Canada.
Sales and Marketing
TriNet sells its services through a direct sales force who work in specific industry verticals. The company also uses billboards, digital and print advertising, e-mail, direct mail and social media. Its list of more than 8,900 clients have included EDL Consulting, GlobalLogics, Illinois Children's Healthcare Foundation, Jackboro National Bank, Primera Biosystems, and VIMAC Ventures.
The company has enjoyed significant growth over the last few years, with revenues surging around 60% from $1 billion in 2012 to $1.6 billion in 2013. Its profits, however, declined 59% from $32 million in 2012 to $13 million in 2013 due to higher insurance costs and increased operating expenses. TriNet generates 83% of its total sales from insurance services; the remainder derive from its professional services segment.
Mergers and Acquisitions
TriNet continues to expand its service and product portfolio through strategic acquisitions and new product launches. In particular, it is expanding into new growth markets. In 2013 it purchased Ambrose Employer Group, a New York-based company that provides premium HR services primarily to the financial services industry in the New York area. Through the acquisition, the company picked up 1,000 additional clients.
In 2012, TriNet became the largest independent professional employer organization (PEO) expertise company in the US with the acquisition of SOI Holdings. The acquisition enabled TriNet to provide small and medium-sized businesses nationwide with an industry-leading portfolio of professional employer organization products and services. The acquisition also built upon the 2012 purchase of AccordHR (which had a significant presence in the Northeast, Arizona, Florida, Nevada, and Oklahoma), and further extended TriNet's geographic and industry reach across the southeastern US