DecisionHR, a portfolio company of Coalesce Capital, has acquired Paymasters Inc, a Minnesota‑based payroll provider that serves small and medium employers across the Midwest. No financial terms were disclosed.

DecisionHR, headquartered in St. Petersburg, Florida, offers PEO and HR outsourcing solutions. The purchase extends the firm’s geographic footprint into the Midwest and expands its service portfolio.

Peter Newman, CEO, will lead the integration, aiming to cross‑sell PEO services to Paymasters’ client base. The deal illustrates how niche PEOs are leveraging private‑equity backing to scale.

For investors, the transaction adds a Midwest client base and revenue diversification to DecisionHR, potentially prompting lenders and competitors to recalibrate their market positioning.