Gearbox Capital and Waypoint Capital, two private equity firms, have purchased Greenshades Software, a provider of payroll and HR services, from SFW Capital Partners.

Greenshades serves mid-market companies with payroll, payroll tax, human capital management information and software services. While under SFW’s ownership, Greenshades developed a compliance-centric payroll service as well as integrations and partnerships to address the hire-to-retire workflow needs of its customers. Greenshades’ customer base is made up of approximately 3,700 middle-sized businesses that employ roughly 4 million people in the U.S.

“Based on recent investments made at the company, Greenshades is strongly positioned to capture significant market share in the mid-market for Payroll and HR solutions through its unique focus on complex, compliance-centric workflows for businesses that rely on a deskless workforce,” says Omair Sarwar, managing partner at Gearbox. “Differentiated technology and a unique go-to-market underpin strong growth fundamentals that Greenshades will look to supplement, with our support, through its ‘build-partner-buy’ strategy.”