Two Big Workplace-Software Providers to Merge -- Update
February 20 2020 - 11:06AM
Dow Jones News
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)
Copyright (c) 2020 Dow Jones & Company, Inc.
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