Tech Dealmaker Awards
2007
24 Tech Dealmakers for 2007
Kronos takes private path to growth
When Hellman & Friedman Capital Partners VI LP took Kronos Inc. private for $1.8 billion in March, Kronos shareholders received $55 per share in cash for each share of Kronos common stock held — a 34 percent premium over its closing share price from its trading price 20 days prior to the acquisition announcement.
Kronos has set its sights on becoming the first $1 billion software firm exclusively focused on managing the work force, said Aron Ain, Kronos’ CEO.
“The acquisition has enabled Kronos to focus on its corporate goals of growing globally, expanding its presence in talent management and maintaining its leadership position in work-force management, without the distraction of needing to meet Wall Street’s expectations every quarter,” said Ain.
Kronos has strengthened its board by adding industry experts looking to leverage best practices, Ain said.
Investing alongside Hellman & Friedman was JMI Equity, a private equity firm focused on the software and business services industries. Kronos appointed JP Morgan as its paying agent.
“We believed that Hellman & Friedman would be a great partner for Kronos. They have tremendous capital resources, significant expertise in software and technology, and a proven track record of building leading global companies,” said Ain. “Hellman & Friedman shares our commitment to accelerate global and talent management expansion initiatives as we work together to achieve our goal.”
— Bridget Botelho is a freelance writer in Providence, R.I.
Category
Top Recapitalization/Financing Deals
The Deal
Kronos Inc. executed a $1.8 billion recapitalization by Hellman & Friedman. Closed on June 11, 2007.
Key Executives
Aron Ain, CEO; Paul Lacy, president; James Kizielewicz, SVP; Peter George, CTO; Mark Julien, CFO.
Deal advisers
Legal: Choate, Hall & Stewart LLP; Gotshal & Manges LLP; Simpson Thacher & Bartlett LLP; Weil; Wilmer Cutler Pickering Hale and Dorr LLP; Schurgin, Gagnebin & Lebovici.
Financial: Jefferies Broadview.
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Platinum Sponsor:
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Gold Sponsors:
Capital Source
Silicon Valley Bank
TM Capital
Vitale, Caturano & Co. -
Silver Sponsors:
Capital IQ
Citizens Bank -
Supporting Sponsors:
Mass High Tech
Preston Productions
Trinity Communications