Pegged Software (“Pegged”) announced today that it raised $7.5 million of growth capital from an affiliate of SunBridge Capital Management, LLC (“SunBridge”). The capital will be used to fund expansion of Pegged’s product offering, helping companies reduce employee turnover by upwards of 75%.
Pegged Software applies big data to employee hiring and team assembly for an expansive list of job categories, including nurses, medical technicians and CNAs, admitting clerks, food and nutrition employees, and housekeepers. Pegged’s proven product drives down costs associated with turnover while dramatically improving employee and customer satisfaction. Since beginning to scale in the healthcare industry in 2012, Pegged has rapidly expanded across the country into 119 facilities, ranging from acute-care hospitals to long-term care facilities; and, annually processes over 3 million job applications. With clients including Adventist Healthcare, Loma Linda University Medical Center, Lifebridge Health, and other world-renowned healthcare providers, Pegged uses proprietary algorithms to predict which applicants will be successful in each institution, department, and role. Pegged has successfully reduced employee turnover by an average of 38% across all client sites and job categories and has never failed to achieve a statistically significant turnover reduction.
“We are excited to be working with SunBridge to expand our business and help more enterprises reduce costs related to turnover, enhance employee and customer satisfaction, and improve organizational outcomes,” stated Mike Rosenbaum, Pegged Founder and CEO.
Pegged will use the proceeds from the capital raise to further expand its team, expand more broadly into healthcare organizations, and invest in research and development for expansion into other people-intensive industries. “Pegged’s platform targets the best talent specific to each company, job, and team and has proven its ability to transform the way the healthcare industry evaluates one of its most critical assets, its employees. We are very excited to be working with Mike Rosenbaum and his team to expand on Pegged’s success,” stated Charles A. Ledsinger, Jr., Chairman of SunBridge Capital Management, LLC.
In conjunction with the capital raise, Charles A Ledsinger, Jr., Chairman of SunBridge Capital Management, LLC, former Vice-Chairman and CEO of Choice Hotels International (NYSE:CHH), and former Chairman of Darden Restaurants (NYSE: DRI); Alfred Berkeley, former President of NASDAQ and former head of the technology practice at Alex, Brown; and David Joerg, Managing Director and key technologist at Two Sigma, a large quantitative trading firm, will be joining Pegged’s Board of Directors.
“The organization is honored to welcome our newest board members; each individual brings vast experience and talent that will be critical to our continued success,” stated Mr. Rosenbaum.
About Pegged Software
Pegged Software uses data to match personality, culture, and talent. The Company has developed proprietary technology that enables the company to apply big data to hiring and team assembly for a wide range of roles. Pegged uses algorithms to predict which applicants will be successful in each institution, department, and position, and in doing so the Company has successfully reduced employee turnover by an average of 38% across all 119 client sites and job categories. Pegged is currently growing its presence within the healthcare services industry and expanding its offerings to other people-intensive industries.
About SunBridge Capital Management, LLC
SunBridge Capital is an investment management firm focused on opportunities in growth oriented businesses in targeted industries. SunBridge has dedicated long-term capital, a proven investment team, and extensive operational experience. SunBridge Capital’s legacy includes: Choice Hotels International, HCR Manor Care, Sunburst Hospitality, Vitalink Pharmacy Services, Darden Restaurants, Harrah’s, The Promus Companies, and the St. Joe Company. SunBridge’s goal is to build upon its successful history through prudent investments in leading operating businesses. Its unique capital base allows the firm to be long-term disciplined investors with the ability to own assets in perpetuity. This investment horizon allows SunBridge to focus on building strong long-term business plans that create value through all economic cycles.
