On Monday, the 4th of February, a cloud-based human resource application developer, Ultimate Software Group Inc. had said that they had agreed to be bought by the private equity firm Hellman & Friedman in an $11 billion buyout deal.
An all-cash offer of $331.50 per share had been at a premium of 19 percent for the Human Resource application developer’s closing price on Friday (February 1st) and following the release of the news, the share price of Ultimate software surged by 19.5 percent to $332.01, as investors remained optimistic about the possibility of rival bidding.
Nevertheless, the investor group, offering that havoc buyout deal for Ultimate Software, also includes the GIC Pte Ltd., Blackstone Group LP, JMI Equity and the Canada Pension Plan Investment Board.
According to the people familiar with the deal, the buyout would be financed heavily with equity and a relatively small amount of debt would be used in comparison to a traditional leveraged buyout.
Exempting interest taxes and depreciation, alongside amortization, the Ultimate Software’s earnings had been around $300 million, an Ultimate Software spokesman revealed. Addressing the buyout as a buoyant move for the investor group, a senior managing director of Blackstone, Martin Brand, said in an interview, “We’ve done a lot of work looking at the space in the last year and this is an exceptional company with a strong culture.