Silva Capital Solutions Advises Propel HR in Acquisition by OneDigital

OneDigital PEO has successfully acquired Propel HR, an IRS-Certified Professional Employer Organization (PEO) based in Greenville, South Carolina, in a transaction that closed in January 2026. The financial terms of the deal remain undisclosed. This acquisition marks a significant milestone for OneDigital, as it establishes the company's first PEO presence in South Carolina, expanding its footprint in the competitive HR solutions market.

Founded in 1996, Propel HR has built a robust reputation by providing comprehensive PEO services, payroll, and HR solutions to small and mid-sized businesses across 49 states. The company, led by President Lee Yarborough, emphasizes a family-oriented culture and a commitment to delivering personalized service. The acquisition by OneDigital, an Atlanta-based firm recognized for its insurance, financial services, and HR solutions, aligns with OneDigital's strategy of integrating well-established, founder-led businesses with strong operational foundations.

The strategic rationale behind this acquisition is multifaceted. OneDigital aims to enhance its service offerings and market presence in South Carolina, a region that has seen a growing demand for PEO services. By acquiring Propel HR, OneDigital not only gains access to an established client base but also leverages Propel HR's expertise in HR management and payroll solutions. This move is indicative of a broader trend in the PEO sector, where consolidation is becoming increasingly common as firms seek to scale operations and diversify their service offerings.

Silva Capital Solutions, Inc. served as the exclusive sell-side advisor for Propel HR throughout the transaction. Their involvement included managing the valuation, buyer positioning, diligence, and negotiations, allowing Propel HR to maintain focus on its operations during the sale process. The successful execution of this transaction underscores the importance of strategic preparation and the role of experienced advisors in navigating complex M&A processes.

The acquisition of Propel HR by OneDigital reflects ongoing dynamics in the PEO sector, characterized by increasing competition and a push towards consolidation. As companies recognize the value of outsourcing HR functions, the demand for PEO services is expected to grow. This trend may lead to further consolidation in the industry, with larger firms seeking to acquire smaller, specialized providers to enhance their service offerings and geographic reach. Overall, this transaction not only strengthens OneDigital's position in the market but also signals a continued evolution within the PEO landscape, with implications for both service providers and their clients.