Gusto Buys 401(k) Platform Guideline for $1B+

Gusto, the fast-growing online payroll provider, announced that they are acquiring Guideline, the online 401(k) plan provider. Terms of the deal were not released, but we estimate it was in excess of $1B given that revenue at guideline was reported at around $150 million per year and they have been growing at a good clip.

No real surprises here. ADP has a 401(k) platform and Paychex as well. Gusto and Guideline have had a longstanding working relationship. Gusto reportedly was the strongest source of leads for Guideline so integration should be smooth.

It will be interesting to see what Workday does about it. In the meantime, Gusto is the WealthTech Strategy Partners payroll provider so I suppose there is nothing to do but kick back and wait for our lavish 401(k) package to roll in.