PE HUB Wire Highlights, 2.4.19

Photo of Luisa Beltran, PE HUB Senior Editor, courtesy of Buyouts Insider.

Hellman-led group to buy Ultimate Software for $11B; TSG Consumer Fund VIII raises $4B; Lightyear puts Advisor Group on the block

Congratulations to the New England Patriots fans on winning their sixth Super Bowl. Now will Tom Brady retire? We can only hope.

It’s merger Monday and we have a club deal. This morning, Ultimate Software said it agreed to be sold to a group led by Hellman & Friedman for $331.50 a share cash, or about $11 billion. Other buyers include BlackstoneGICCanada Pension Plan Investment Board (CPPIB), as well as JMI EquitySee our brief here.

The deal includes a 50-day go-shop, where Ultimate’s board and financial adviser are allowed to seek out other proposals. The provision allows Ultimate to terminate its deal with the Hellman-led group to accept a better offer. Now, Hubsters, go-shops have gotten somewhat popular in the past decade, but I can’t remember the last time it actually led to a deal. Can anyone recall one that did? Email me

Ultimate was founded by Scott Scherr, its CEO and president, back in 1990. It went public in 1998, CrunchBase said. Goldman advised Ultimate while Qatalyst Partnersprovided financial advice to Hellman & Friedman.

Deals: In other news, I have a story on Advisor Group, which is backed by Lightyear Capital. The broker-dealer was reportedly in talks to sell Lightyear’s stake to Genstar Capital in January. Now, I’m hearing that Lightyear has put Advisor Group up for sale and could get a lot more than what Genstar was pitching, according to several sources. Find out how much Advisor Group could sell for here.

Funds: TSG Consumer Partners has closed its eighth flagship on $4 billion. See our brief here.

News from Buyouts Insider/VCJOregon Investment Council at its Jan, 31 meeting approved more than $1 billion of private-markets commitments, including a big pledge to Blackstone Group’s eighth fund, Dietrich Knauth reports.

Further Global, launched by Carlyle Group’s former financial-services chief, early in its debut fundraising got a big vote of confidence from a well-known endowment. Read Chris’s story here.


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