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February 4, 2019

Private Equity Fund to Buy Software Group for $11 Billion

“The transaction provides our stockholders with a substantial premium."

By CBR Staff Writer

Private equity firm Hellman & Friedman has agreed to buy Florida-based Ultimate Software Group Inc., and will take it private after securing agreement for an $11 billion offer – a 32 percent premium on its average trading price over the past 30 days.

Ultimate Software, founded in 1990, serves 5,600 companies worldwide.

The company provides a suite of human capital management and employee experience solutions globally — including HR, payroll, benefits management, talent acquisition, talent management, workforce management and employee sentiment analysis.

The latter offering in particular stands out as a hugely hot offering right now, with both SAP and Microsoft moving to acquire employee sentiment software companies in recent months; SAP acquiring Qualtrics and Microsoft buying Glint.

Ultimate Software is the second-fastest growing company in what is estimated to be a $17 billion human-capital management and payroll-software market, behind Workday.

Shareholders will receive will receive $331.50 per share under the all-cash deal.

ultimate softwareUltimate Software: Holds 48 Million People’s Records

If the deal closes, as expected, in mid-2019, Ultimate Software – which holds the records of more than 48 million people – will be owned by an investor group led by Hellman & Friedman alongside Blackstone, GIC, and Canada Pension Plan Investment Board.

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The HR software enterprise has 50 days to consider any competing offers that might be made to buy the company.

Scott Scherr CEO and founder of Ultimate Software said in a release: “The transaction provides our stockholders with a substantial premium. Our decision was also made with the best interests of our 5,144 employees and our more than 5,600 customers at heart.”

“This change will bring meaningful benefits to our employees and customers — both in the long and short terms. Since all of our employees are given equity in Ultimate when they join us, as stockholders, this transaction will result in immediate financial upside for them. Today’s announcement will also allow us to make additional, prudent investments in our products and services to better serve our customers.”

See Also: SAP CEO Waves “Xs and Os” as Cloud Soars 40%

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