Ultimate Software Group Inc. said on Monday via a press release that it has agreed to be acquired by an investor group led by private equity firm, Hellman & Friedman, for approximately $11bn (£8.4bn).
Shareholders at Ultimate Software will receive $331.50 (£254.86) in cash per share, which represents a premium of about 32% of the company’s closing stock price during the 30 days ending Feb. 1st.
The investor group also includes Blackstone, JMI Equity and the Canada Pension Plan Investment Board and GIC Pte Ltd.
Ultimate Software, which made more than $1.1bn (£845.6m) in 2018 revenue, expects the deal to be finalised by mid-2019.
Upon completion of the transaction, Ultimate will continue to operate under the guidance of CEO, Scott Scherr, and his existing management team.
“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,” Scherr said.
“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,” Scherr added.
Ultimate Software Groups shares rose to 19.69% to $332.54 (£255.74) on Monday.
“We are excited to partner with Ultimate and this investor group to support the strong growth and culture of this exceptional company,” said Blackstone’s Martin Brand.