Gusto Acquires Retirement Provider Guideline Expanding SMB Benefits

Gusto, a payroll and HR platform valued at $9.3 billion, has agreed to acquire Guideline, a retirement plan provider specializing in 401(k) plans for small and medium-sized businesses. The two companies have been partners since 2016, with Guideline providing retirement plans through integrations with Gusto and other payroll providers such as ADP and Intuit, which will continue post-acquisition. Guideline, valued at approximately $851 million today after valuation compression and with $140 million in annualized revenue as of January 2025, serves around 65,000 customers with over $20 billion in assets under management. The acquisition aims to simplify retirement access for small businesses amid increasing state mandates for employer-sponsored retirement options and to accelerate Gusto's growth, targeting to add 150,000 new clients in 2025. Both companies share the mission of making benefits more accessible and affordable for small businesses, with Gusto expanding beyond payroll and into comprehensive benefits and compliance services. This consolidation reflects a broader trend of startups acquiring complementary venture-backed peers to strengthen their offerings in the competitive fintech and HR tech markets.