Ultimate Software Stock Jumps at $ 11 Billion Cash Offer

On Monday, Ultimate Software (ULTI) said it would be acquired by an investor group in a $ 11 billion cash deal.


The investment group is managed by Hellman & Friedman and also includes Blackstone, GIC, Canada Pension Plan Investment Board and JMI Equity. The company expects the transaction to close in the middle of 2019.

Ultimate shareholders will receive $ 331.50 in cash for each part of the company's stock market. Ultimate said the offer represents a premium of around 32% over the share's volume-weighted average price over the 30 trading days ending February 1.

Ultimate Software stock jumped 19.5% near 331.85 during the recent stock market actions today. 19659006] "Since all our employees receive equity in Ultimate when they join us as shareholders, this transaction will result in immediate financial upside for them," said CEO Scott Scherr in a press release. "Today, the announcement allowed us to do more , cautious investments in our products and services to better serve our customers. Hellman & Friedman is fully in line with our vision of serving the global HR market. "

Ultimate Faces Stiffer Competition [19659008] Nandan Amladi, analyst at Guggenheim Securities, says the deal is not a surprise.

" The bulls had claimed that the stock deserved a premium for its steady growth, consistent execution and strong market position, had we seen competition, especially on the product front, pick up, especially from Ceridian (CDAY) at midmarket and Working Day (WDAY) in the upper part of the market, "Amladi said in a report to clients.

Ultimate specializes in human-capital management software as a service.

Ultimate Software Warehouse hit a 52- Weekly rally of 332.35 on September 14 during a rally in enterprise software stocks, Ultimate Stocks hit a low level of nearly 220 on December 24 during a broad sale in technology stocks.

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