Atairos Group Inc., an independent private company, agreed to acquire a roughly 26% ownership stake in TriNet Group Inc. worth approximately $440 million.
The stake represents the entire remaining interest held by TriNet investor General Atlantic. Atairos will purchase about 17.7 million of TriNet common shares for $25.00 per share from funds affiliated with General Atlantic, increasing Atairos' total ownership position in TriNet to about 28%.
No new shares will be issued by TriNet, and the company will not receive any proceeds in connection with the transaction.
Pursuant to a stockholder agreement between Atairos and TriNet, among other things, Atairos Chairman and CEO Michael Angelakis will join TriNet's board, expanding it to 10 members. David Hodgson, managing director of General Atlantic, will continue to serve on TriNet's board.
The transaction is subject to closing conditions, including the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, and is expected to close in the first quarter of 2017.
J.P. Morgan Securities LLC acted as financial adviser, and Simpson Thacher & Bartlett LLP provided legal counsel to Atairos. Paul Weiss Rifkind Wharton & Garrison LLP provided legal counsel to General Atlantic, while Davis Polk & Wardwell LLP provided legal counsel to TriNet.