Kronos, Ultimate Software leave existing debt in place with merger

By Sara Rosenberg

New York, April 1 – Kronos Inc. and Ultimate Software left their existing bank debt in place in connection with completion of their all-stock merger on Wednesday, according to market sources.

One source explained that there was no change of control at either company, so the debt did not need to be refinanced.

Another source said that although the existing debt remained in place, he wouldn’t “be surprised to see them collapsed into one” at some point when the market stabilizes. “But there’s no urgency to do so,” he added.

Hellman & Friedman LLC, the controlling shareholder of both Kronos and Ultimate Software, is the controlling shareholder of the newly formed company. Blackstone, GIC, Canada Pension Plan Investment Board and JMI Equity will be minority investors in the combined company.

Lowell, Mass.-based Kronos and Weston, Fla.-based Ultimate Software are providers of cloud human capital management and employee experience solutions. The new company shares joint headquarters in Lowell, Mass. and Weston, Fla.

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