mergermarket logo

by Deborah Balshem 

Divvy Engagement Solutions, an employee engagement software platform, is actively seeking acquisitions after a recent private equity injection, said CEO Casey McCullar.

On 22 February, Denver-based Divvy announced an undisclosed growth equity investment from Essex Bay Capital. The deal, in which the PE firm acquired a majority stake, officially closed in December, Essex Bay co-founder Franklin Foster told this news service in the same interview.

According to Foster, Divvy is profitable and aims to reach USD 50m in revenue within three to five years via organic and inorganic growth. The company currently is looking at acquisition targets with up to USD 15m-USD 20m in revenue, he said.

Divvy is seeking targets primarily in the US, though Foster noted it has a Letter of Intent in place with a small, European-based technology company.

The business is looking to diversify its employee engagement solutions via buys, McCullar added. Attractive capabilities include employee surveys, behavioral analysis, performance management, and peer-to-peer communication and recognition, he said.

Founded in 1998, Divvy’s employee engagement, culture, rewards and analytics platform uses recognition, values reinforcement and open communication to help organizations increase employee engagement, reduce turnover, improve culture and drive high performance. Its solutions also deliver analytics on culture, results and ROI, while enabling companies to provide non-cash and cash compensation for milestones, occasions, rewards and perks.

The company caters to organizations with between 1,000 and 25,000 employees in a variety of verticals, including insurance and technology. It has dozens of clients, McCullar said.

Industry reports estimate that the employee engagement software market will grow to more than USD 6bn by 2026. The COVID-19 pandemic is driving up demand amid hybrid and full remote work environments, Foster noted.

Valuations are also frothy, he added, with many companies trading off high-single or double-digit multiples of revenue.

The space is highly fragmented, with no major national player, Foster continued. Divvy’s peers, according to him, include Bonusly, Snappy and WorkHuman.

Last May, Snappy completed a USD 70m Series C funding round, bringing total funding for the company to more than USD 100m. Workhuman, which has raised more than USD 130m, in early 2020 was valued at approximately USD 1.2bn. The tech unicorn, which scrapped plans for an IPO in 2014, last year hired a new CFO with direct IPO experience.

Divvy is the second platform investment for Essex Bay, which launched in 2021 with its acquisition of Munetrix, a provider of decision support software for k-12 school districts and municipalities.

In conjunction with the Divvy transaction, McCullar was appointed CEO. McCullar has a 20-year background working as an executive for fast-growing SaaS companies, including as former general manager for Vaisala’s Digital Lightning business unit.

Divvy uses law firm TCF Law and accounting from Gray, Gray & Gray.


Mergermarket ( is the leading provider of forward-looking M&A intelligence and data to investment banks, private equity firms, lenders, law firms, accounting firms and corporates around the world. Our parent company, ION Group, is the largest global provider of trading, analytics and risk management solutions for capital markets.