By Lisa Kerner
Charlotte, N.C., March 5 - Gevity HR, Inc. agreed to be acquired by TriNet Group, Inc. in an all-cash transaction valued at $4.00 per share that will result in Gevity being a privately held company, it was announced on Thursday.
The offer is a premium of approximately 97% over Gevity stock's closing price on Wednesday, according to a Gevity news release.
TriNet president and chief executive officer Burton M. Goldfield will lead the combined companies.
Gevity and TriNet expect to close the transaction in the second quarter of 2009, subject to Gevity shareholder approval and other standard closing conditions.
ValueAct Capital Management, LP, Gevity's largest shareholder, agreed to vote its shares in favor of the deal.
General Atlantic, LLC, TriNet's largest shareholder, also owns approximately 9.5% of Gevity's outstanding common stock, the release said.
"The company's board of directors has concluded a lengthy evaluation of numerous strategic alternatives to enhance shareholder value and has concluded that joining forces with TriNet is in the best interests of our shareholders," Gevity chairman and CEO Michael J. Lavington said in the release.
Credit Suisse Securities (USA) LLC is advising Gevity on the transaction.
Gevity also announced that its board of directors declared a cash dividend of $0.05 per share of common stock payable on April 30 to shareholders of record on April 16. In addition, Gevity said it postponed its May 20 annual meeting of shareholders due to the pending merger.
TriNet is a privately held provider of human resource outsourcing services for small businesses. The company is based in San Leandro, Calif.
Gevity is a Bradenton, Fla.-based provider of payroll, insurance and human resource outsourcing services to small and medium-sized businesses.
| Acquirer: | TriNet Group, Inc.
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| Target: | Gevity HR, Inc.
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| Announcement date: | March 5
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| Price per share: | $4.00
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| Expected closing: | Second quarter of 2009
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| Stock price of target: | Nasdaq: GVHR: $2.03 on March 4
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