A pair of corporate projects — one an expansion and another an outside company placing operations in Utah — will lead to the creation of about 900 jobs over the next five years in Utah County.
Lehi-based Canopy, which offers a cloud-based practice management product for tax professionals, will add up to 538 jobs — more than tripling its current 250 headcount. Chicago-based GoHealth, a private online exchange for individuals and families to shop and compare health insurance plans, will hire 363 people for operations that will be at a currently vacant two-story, 50,000-square-foot building in Lindon.
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The companies made the announcements last week after being approved for incentives by the Governor’s Office of Economic Development (GOED) board.
Canopy was founded in 2014 after CEO Kurt Avarell, a former Wall Street tax attorney, grew frustrated with the lack of efficient, streamlined tools for tax professionals. In the same year, Canopy received $2 million in seed funding. Since then, the company has received an additional $70 million in funding, experienced 1,900 percent growth in paid customer accounts in 2016, and signed up more than 700 accounting firm customers.
“As a company born and bred in Utah, we’ve enjoyed the resources and benefits the state provides for small and growing businesses such as Canopy,” Avarell said in a prepared statement. “We are committed to growing our employee base and further contributing to Utah’s economy as we disrupt the $100 billion-plus tax software and services market from right here in Silicon Slopes.”
The $7.5 million Canopy project is expected to generate $149.7 million in new wages over five years — the average wage will be $85,000 — and $6.2 million in new state tax revenue during that period. The GOED board approved a tax-related incentive of up to $1.24 million.
“Canopy is a home-grown company that is rapidly growing and we are excited they have chosen to expand in Utah,” said Vale Hale, GOED’s executive director. “It’s great to see our Silicon Slopes thrive and find innovative ways to grow our tech economy.”
The GOED incentive for the $900,000 GoHealth project is tied to the creation of 363 full-time jobs but the company will create about 150 part-time and seasonal positions as well. The full-time jobs will pay an average wage of $57,000. The project is expected to generate about $84.6 million in wages over five years and more than $3.2 million in new state tax revenues during that period. The state incentive is for up to $643,298.
“Salt Lake City was a natural choice for our next office. From the city’s growing business culture to its deep talent pool, we felt it was the right fit for our latest expansion,” Clint Jones, company co-founder and CEO, said in a prepared statement. “This new office is an exciting indication of our company’s growth, and we greatly look forward to becoming a part of the local business community.”
Founded in 2001, GoHealth currently has more than 450 employees.
“GoHealth is among the many companies recognizing the potential of Utah’s talented and friendly workforce,” said Theresa Foxley, president and CEO of the Economic Development Corporation of Utah. “The company’s innovative corporate culture is a wonderful addition to Utah’s growing economy.”{/mprestriction}
