TriNet to Acquire Gevity HR., Inc.
Solidifies Position as a Leading Provider of HR Services for Small Businesses
SAN LEANDRO, CALIF. AND BRADENTON, FLA. – (March 5, 2009) – TriNet, a provider of human resources (HR) outsourcing services for small companies, today announced the signing of a definitive agreement to acquire Gevity HR, Inc. (NASDAQ: GVHR), an HR outsourcing company based in Bradenton, Florida, for $4.00 per share in an all cash transaction valued at approximately $98 million. The Boards of Directors of TriNet and Gevity unanimously approved the agreement.
With this transaction, TriNet will become one of the leading HR outsourcing companies serving small businesses in the United States, with more than 8,000 customers employing more than 130,000 people nationwide. The acquisition advances TriNet’s plans to be a nationwide HR provider with the reach, technology, and industry expertise to serve customers everywhere. The new company will be a preeminent HR outsourcing leader in California and Florida with strong competitive positions in Texas, New York, New Jersey, New England and Colorado.
The acquisition is subject to approval by Gevity stockholders and customary regulatory approval. After receipt of the requisite approvals, the acquisition is expected to be completed in the second quarter.
“For too long, small businesses have been forced to settle for a ‘one size fits all’ approach to HR outsourcing. Our experience tells us that the needs of a retail franchise are dramatically different than those of a software startup,” said Burton M. Goldfield, President & CEO of TriNet. “With this combination, TriNet will set a new standard by delivering industry-specific services and solutions to small businesses nationwide.”
The newly combined operation will capitalize on deep industry expertise to bring customers a broader product portfolio, expanded risk management capabilities, and expanded benefits and workers compensation packages. All customers will gain the benefits of TriNet’s world-class technology platform with a significantly enhanced level of automation.
The acquisition will be handled by an experienced integration team using best practices, ensuring a seamless transition process. Customers will undergo no changes to their current service delivery.
“TriNet was a natural choice for Gevity because of its deep commitment to its employees and customers,” said Michael Lavington, Gevity’s Chairman of the Board & CEO. “Gevity’s values and culture are closely aligned with those of TriNet and we look forward to combining the talents of both teams to build a great company.”
TriNet’s majority investor is General Atlantic, a global growth equity firm with $13 billion under management. David Hodgson, managing director of General Atlantic and a board member of TriNet, said “General Atlantic enthusiastically supports TriNet and Gevity as they team up to bring continued innovation to their small business customers. Our capital can have no higher purpose in these challenging times than to provide a solid platform for the entrepreneurial businesses that fuel our economy.”
TriNet has maintained rapid growth achieving 74% cumulative revenue growth over the last three years. The company has also completed several acquisitions, including LMC Resources, Inc. in Denver (2008), John Parry & Alexander (2007) and the Outsource Group (2006) both based in Walnut Creek, California, and the E3 Group in Dallas (2003).
Jefferies & Company, Inc. served as exclusive financial advisor to General Atlantic and TriNet Group, Inc. for this transaction.
About TriNet Group, Inc.
Founded in 1988 in the San Francisco Bay Area, TriNet provides strategic, cost-effective payroll, benefits, and HR outsourcing services to companies throughout the United States and Canada. TriNet specializes in helping small businesses reach their corporate goals and become destinations for top talent, enabling them to compete successfully with larger, more established organizations. TriNet’s comprehensive offerings include HR administration, online employee benefits administration and support, employer risk management, payroll processing, tax compliance, workers compensation, group health and welfare products, and strategic human capital consulting services. For more information about TriNet, visit http://www.trinet.com.
About Gevity
As a leading provider of HR solutions, Gevity helps small businesses nationwide maximize performance through its world-class HR expertise and services—including payroll, benefits, administrative processing, risk management, policies and procedures, new hire support, performance management, and employee development, and retention. For more information, visit http://www.gevity.com
About General Atlantic
General Atlantic is a leading global growth equity firm providing capital and strategic support for growth companies. GA combines a collaborative global approach, sector specific expertise, long-term investment horizon and a deep understanding of growth drivers to partner with great management and build exceptional businesses worldwide. Founded in 1980, GA manages approximately $13 billion in capital and has more than 75 investment professionals based in Greenwich, New York, Palo Alto, London, Düsseldorf, Hong Kong, Beijing, Mumbai and São Paulo. For further information and a listing of GA's public and private portfolio companies see http://www.generalatlantic.com.