LYNN — In what it called an “unusual and interesting acquisition,” the DiVirgilio Insurance Agency announced it has merged with On-Time Payroll, Inc., which has become a new payroll subsidiary of the company.
Matthew DiVirgilio, president of DiVirgilio Insurance, said the agency had “silently” acquired On-Time Payroll in a multi-million dollar transaction last November, but did not start announcing the deal until this past May.
“(It’s) unique to our industry,” said DiVirgilio. “I don’t think it’s ever really been done with an independent insurance agency and independent payroll bureau coming together.”
Both firms work with small businesses, said DiVirgilio, explaining that the merger allows the insurance agency to offer a more comprehensive product line-up and provide a one-stop shopping experience for all of their commercial client needs, including insurance, employee benefits, risk management and payroll.
Similar mergers are common among the “bigger players” in insurance, said DiVirgilio, noting that he felt his company could operate more efficiently.
“I thought we could do it better,” said DiVirgilio. “When the opportunity arose to acquire On-Time Payroll, it was the perfect timing (and) perfect fit so we could make this service-oriented business better. We’re able to offer more products to one client.”
Based in Lynn, DiVirgilio Insurance has been a family-owned and operated independent insurance agency for more than 20 years. Matthew DiVirgilio acquired the company from his father, former Lynn Mayor Albert DiVirgilio, in 2010. His father had started the company after he left office in 1992, and Matthew has worked at the agency since 1999.
On-Time Payroll is a local payroll business bureau that offers a vast array of services, such as timekeeping, human resources solutions and workers’ compensation, along with payroll and tax services. Founded in 2006, it is based in Waltham.
In her farewell letter to her clients and colleagues, On-Time Payroll’s founder Carmen Barmakian said her passion for helping small businesses was the inspiration for starting her company, and she was grateful that its core mission would remain the same.
“The core mission of OTP has always been helping small businesses achieve success,” said Barmakian. “It gives me great comfort to know that mission will continue for a long time to come as I am leaving this company in very capable hands.”
Under DiVirgilio’s leadership and guidance, Barmakian said OTP “will transform into a full-blown human capital management firm, expanding the breadth of services offered while maintaining the local charm and deep connection to the community.
“A primary driver of OTP’s future growth is that clients will have the opportunity to take a holistic approach and work with one entity for all of their payroll, timekeeping, insurance, benefits and HR-related needs,” she said.
So far, everything has been going well, according to DiVirgilio. The insurance agency inherited seven to eight employees with the acquisition and now has a staff of 18 people between the two companies.
“We’re just really excited to bring this to this community on the North Shore,” said DiVirgilio. “I think it’s going to be neat to offer all these products to all these businesses we’ve been working with for so many years.”
