Press Release: 01.24.24

Hadley, MA —After implementing an Employee Stock Ownership Plan (ESOP) in 2016 that turned over 40% of the business to its employees, Paragus IT has recently transitioned to 100% employee ownership.

With offices in Hadley and Worcester, Paragus is one of the fastest-growing IT companies serving small to medium-sized businesses in the region. They attribute that growth partly to the ESOP model, which has proven effective in recruiting talent, improving retention, and offering a higher level of service to their clients.

The company has come a long way since it was founded by CEO Delcie Bean, when the entrepreneur was only 14 years old.  

“As the value of Paragus increased over the years, it felt inequitable to me that I was the sole beneficiary,” Bean says. “So it made sense to explore and employee ownership model. Beyond feeling like this was the right thing to do, it was also a bet on our future. A bet that we’d grow even faster as an employee-owned company.”

That bet has paid off. Not only has Paragus paid out hundreds of thousands of dollars to their employee-owners since shifting to the ESOP model in 2016, they have also grown to be the largest IT provider in their market, completed multiple acquisitions, expanded into a new city, and increased their headcount to more than 65 people.

Having accomplished many of their initial goals, Paragus was faced with an important decision regarding future growth. Should they do what many companies have done and bring in outside capital to take things to the next level? Or do they go all in on the employee ownership model?

After a lot of research and strategic planning, Paragus made the decision to transition to 100% employee ownership in 2024.

“Private equity capital is a nice way to make some rich people a little richer,” Bean says. “But this move allows us to fuel our growth while potentially having a life-changing impact on the people who are doing all the hard work.”

The move was also a strategic plan to keep local jobs and resources in the community, something that is often lost in private equity takeovers.

“This not simply an investment in ourselves,” Bean says. “It’s also an investment in our clients and the communities where they reside. We have seen firsthand the impact on innovation and customer experience that employee ownership can have.”

The ESOP model has become more popular in recent years, but as in the case of Sullivan Tire, a recent high-profile example, it’s usually implemented as a succession plan. Part of what makes the Paragus model unique is the fact that Delcie Bean will not be stepping down as CEO and has no plans to transition out of the business. He simply sees it as the smartest, most equitable way forward.

“As we look ahead to the future, we have set a goal of serving 1,000 small businesses across the United States,” he says. “To accomplish that audacious goal, we are going to need the continued commitment, passion, and dedication of our incredible employee-owners. With 100% employee ownership, I’ve never been more confident that we will succeed.”