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Hellman & Friedman buys $1.8bn Kronos

US and UK buyout firm Hellman & Friedman has bought Kronos, a provider of human capital management solutions, in a deal valued at about $1.8 billion.

Kronos, a US human capital management business, has agreed to be bought by private equity firm Hellman & Friedman for about $1.8 billion (€1.4 billion).

 

Shareholders will receive $55 per share, which represents a 34.4 percent premium on Kronos’ closing share price from 20 trading days ago.

 

Kronos is looking to take advantage of Hellman & Friedman’s long experience of working with growth companies in the technology sector. Executive chairman Mark Ain said Kronos had a goal to become the first billion dollar company dedicated to human capital management.

 

Established in 1984, Hellman & Friedman has offices in London, New York and San Francisco, and is currently investing its sixth fund, which has more than $8 billion of committed capital. It has reportedly joined forces with Blackstone and Carlyle to submit a rival bid for US utility company TXU – potentially the largest buyout to date at over $45 billion.

 

JMI Equity, a private equity firm dedicated to software and business services investments, has also invested in the deal. Founded in 1992, the firm has $700 million under management and is based in Baltimore and San Diego. It is currently investing its fifth fund, which has $300 million of commitments.