Inova Payroll and Computerized Payroll Solutions announced Friday that they will merge, creating the largest payroll services provider based in Tennessee.
The new company, which will retain the name Inova Payroll, works for about 800 clients that combined have more than 25,000 employees in 49 states, said Farsheed Ferdowsi, president and CEO of the merged company.
"We are going to build this company into a national brand," Ferdowsi said Friday.
Alaska is the only state in which Inova doesn't operate, which could change as the company expands, he said.
"Right now there is somebody walking around on the island of Hawaii who gets their paycheck processed in Chattanooga," Ferdowsi said. "We will be looking in the future to additional acquisitions or mergers to help us grow."
Sean McDaniel, current chief operating officer of Computerized Payroll Solutions; and Jordan Rush, vice president of sales and marketing at CPS; will join the new company as vice presidents.
McDaniel said he was looking forward to the "new phase in the growth and development of our company."
Inova Payroll will retain offices in Chattanooga, Nashville, Knoxville and Atlanta, Ferdowsi said, with an eye to add offices, employees and clients as it grows past current sales of under $5 million.
"People don't chose a company like us because of price, or service or technology alone. They choose us because of the combination of those," Ferdowsi said.
He chalked the company's popularity up to personalized service that Inova's 40-person team is able to give, versus some of his larger competitors.
"With the big ones, you're on the phone for two hours," Ferdowsi said. "That's not customer service, that's a monstrosity."
A group of local investors including the Chattanooga Renaissance Fund, Tennessee Angel Fund and NCN Angel Fund financed the transaction, according to a news release.