TriNet, a leading provider of human resources solutions for small and medium-size businesses (SMBs), today announced it has entered into a definitive agreement to acquire Zenefits, a People Operations platform purpose-built for SMBs, from Francisco Partners, a leading global investment firm that specializes in partnering with technology businesses.
Details of the stock and cash transaction were not disclosed.
Zenefits is a leading cloud HR platform which provides innovative and intuitive HR, benefits, payroll and employee engagement software purpose-built for small and medium-size businesses. Through the acquisition of Zenefits, TriNet diversifies its product offering to include an Administrative Services Organization (ASO), enabling TriNet to dynamically service SMBs throughout their lifecycle. Upon completion of the deal, the addition of Zenefits will expand TriNet’s ecosystem to serve more than 24,000 SMBs and approximately 600,000 employees.
“I am passionate about providing comprehensive solutions for SMBs and the acquisition of Zenefits will expand and complement the TriNet offering—beyond a Professional Employer Organization or PEO,” said TriNet President and CEO, Burton M. Goldfield. “The timing is perfect for this acquisition given the recent small business boom and increase in new entrepreneurs that can benefit from our service offering. TriNet’s commitment to powering the success of small and medium-size businesses will be expanded to include an ASO product offering—leveraging Zenefits’ industry leading cloud HR platform.”
He added, “We look forward to welcoming the Zenefits team with their extensive SMB expertise as we usher in the next phase of TriNet’s growth.”
“Over the past few years, we’ve successfully transformed our business to a leading SaaS ‘people platform,’ and we are incredibly proud of what we have achieved and the position we are now in to meet the needs of small and mid-sized businesses,” said Jay Fulcher, CEO, Zenefits. “Upon completion of the deal and as part of TriNet, Zenefits will have the resources to continue to serve SMBs today, tomorrow and well into the future.”
Upon deal close, Zenefits will become a wholly owned subsidiary of TriNet and Francisco Partners will become a TriNet stockholder. TriNet is also expected to become a preferred supplier of PEO and HRIS services to Francisco Partners portfolio companies across the country after closing.
The acquisition is expected to close in the coming months, subject to customary closing conditions, including the receipt of regulatory approvals.