BX Blackstone Inc

By Cara Lombardo and Miriam Gottfried 

Workplace-software providers Ultimate Software and Kronos Inc. plan to merge, according to people familiar with the matter.

The all-stock deal would create a company worth roughly $22 billion including debt, the people said. Hellman & Friedman, the private-equity firm that controls both companies, would remain the controlling shareholder, while Blackstone Group Inc., which owns stakes in both, would be the largest minority investor in the combined company.

Kronos CEO Aron Ain would lead the combined company, which would have more than 12,000 employees and have dual headquarters in Lowell, Mass., and Weston, Fla.

Employees of both companies were notified of the deal Thursday morning.

Ultimate Software develops cloud-based subscription software aimed at corporate human-resources departments. Its products include the UltiPro suite of products that allow employees to access tax documents and pay stubs. Kronos is known for its software that helps companies with absence and performance management.

The combined company would have about $3 billion in annual revenue.

Hellman & Friedman paid about $11 billion last year to take Ultimate Software private and bought Kronos in 2007 in a transaction valued at roughly $1.8 billion.

Write to Cara Lombardo at cara.lombardo@wsj.com and Miriam Gottfried at Miriam.Gottfried@wsj.com

(END) Dow Jones Newswires

February 20, 2020 10:51 ET (15:51 GMT)

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