(Adds background, details)
March 26 Cloud-based payroll processor TriNet
Group Inc said it priced its initial public offering at
$16 per share, valuing the company at about $1.09 billion.
Backed by private equity firm General Atlantic LLC, TriNet's
expected offering of 15 million shares would raise about $240
million at that price, which is at the mid-point of its planned
$15-$17 price range.
The stake held by General Atlantic, the company's top
shareholder, will drop to 56 percent after the offering from
TriNet's shares will start trading on the New York Stock
Exchange on Thursday under the symbol "TNET."
Small and medium-sized businesses outsource payroll,
employee-benefit and other human resources functions to San
Leandro, California-based TriNet, which offers a cloud-based
technology platform. The company served more than 8,900 clients
in 47 states, the District of Columbia and Canada as of Dec. 31,
it said in a filing.
The company, which counts Automatic Data Processing Inc
, Insperity Inc and Paychex Inc among
its main competitors, said net proceeds from the offering would
be used to repay outstanding debt.
TriNet has been highly acquisitive, buying premium HR
services company Ambrose Employer Group LLC, technology firm
App7 Inc and insurance and risk-management service provider
Gevity HR Inc.
Shares of online payroll processor Paylocity Holding Corp
soared in their debut last week as investors kept their
faith on cloud-based enterprise software companies.
TriNet's net income fell to $13.15 million in 2013, from
$31.83 million a year earlier. Revenue rose, however, by 61
percent to $1.64 billion last year.
JP Morgan, Morgan Stanley and Deutsche Bank Securities are
among the lead underwriters for the offering.
(Reporting by Avik Das and Rohit T.K. in Bangalore. Editing by
Andre Grenon and Steve Orlofsky)