Gusto, an HR tech startup valued at more than $9 billion, is conducting an over $200 million tender offer via a new deal led by the Ontario Teachers’ Pension Plan.
The tender offer, which begins Monday and runs through July 8, will allow employees in the company to cash out some of their shares while giving the Canadian fund its first stake in the company.
“Given the momentum, we’ve had investors interested in owning Gusto stock for a long time,” Gusto cofounder and CEO Josh Reeves told Fortune via email. The offer will be open to both current and former employees with a minimum of two years of tenure. Gusto declined to disclose price per share and whether there is a maximum number of shares that employees can sell.
The tender offer, the third that Gusto has arranged for employees since its founding in 2012, comes as the market for initial public offerings remains limited. Several tech companies, including Circle and Omada Health, have had IPOs in recent weeks, but the overall number of public listings remains well below historical norms.
Reeves declined to comment on Gusto’s IPO plans, telling Fortune: “Gusto has been a long-term focused, multi-decade company from day one … When we have more details to share on an IPO, we’ll share it.”
The company’s last employee tender offer was in 2021, done in addition to the startup’s $175 million Series E funding round. Gusto—founded in 2011 by Reeves, Tomer London, and Edward Kim—has been free cash flow positive since early 2023.
As Fortune reported in May 2024, Gusto generated north of $500 million in revenue in its 2023 fiscal year. The company also said that it’s been growing over the past year, driven by the expansion of existing products like health benefits and 401(k) management. In 2024, Gusto’s 401(k) business grew its ARR, or annual recurring revenue, about 50% year over year, while the unicorn’s Gusto Money spending account product grew ARR over 140% year over year.
