Payment processing company Ceridian Corp. has sold itself to a private equity company and a specialty insurer in a $5.3 billion cash transaction.
Investment firm Thomas H. Lee Partners, and insurance provider Fidelity National Financial will jointly acquire the Minneapolis-based company that provides human resource solutions and payroll services.
The company’s shareholders will receive $36.00 per share, a 17% premium over the closing price on Feb. 12, 2007, the day before Ceridian’s search of “strategic alternatives” went public.
The merger is subject to shareholder and regulatory approval, plus a financing marketing period that will take place in the fourth quarter.
Deutsche Bank Securities Inc. will act as financial adviser to the buyers, while Greenhill & Co. will advise Ceridian.