News Summary

Gusto, a well-known payroll and HR software company, has acquired Guideline, a startup specializing in providing retirement plans to small and medium-sized businesses, for approximately $600 million. Founded by Kevin Busque, Guideline offers a flat fee per employee for 401(k) management, diverging from traditional asset percentage fees. The acquisition involves divesting Guideline’s accounts linked to rival payroll companies, which could potentially increase returns for investors. Despite the acquisition, Guideline’s spokesperson disputes the exact price and states no customer separation plans. The move consolidates Gusto’s offerings but leaves questions about Guideline’s rationale, given its profitability and competition from rivals like Human Interest.