TriNet Group Inc. announced Thursday evening that it has reached an agreement to acquire the human resources and payroll platform Zenefits from investment firm Francisco Partners for an undisclosed amount of shares and cash.
The cloud-based HR software provider for small and midsize businesses based in Dublin, Calif., Said the acquisition of Zenefits would expand TriNet’s TNET,
Reach to serve more than 24,000 small and medium-sized businesses and approximately 600,000 employees. Zenefits was once popular up to $ 4.5 billion in 2015 in its latest round of venture capital funding.
“The timing is perfect for this acquisition given the recent small business boom and the increase in the number of new entrepreneurs who can benefit from our service offering,” said Burton Goldfield, Managing Director of TriNet, in a statement. âTriNet’s commitment to fostering the success of small and medium-sized businesses will be broadened to include a [administrative services oirganization] product offering by leveraging Zenefits’ state-of-the-art cloud HR platform.
Zenefits, however, has had a somewhat checkered past. In 2015, he had to cut his spending because he failed to meet ambitious income targets. Then, in 2016, he was fined $ 7 million by regulators for license violation and had to crack down on what was considered a culture of brotherhood.
Trinet said he expects the deal to be done “within the next few months.” TriNet shares rose 2% after-hours, after rising 0.6% to close the regular session at $ 94.57.