TriNet, a lead provider of HR solutions specifically for the small and medium-sized businesses (SMBs), recently announced entering into a specific agreement for acquiring Zenefits, a People Operation Platform built especially for SMBs, from Francisco Partners.
Francisco Partners is a premier global investment firm specializing in partnering alongside technology businesses. Zenefits is a lead Cloud HR podium offering innovative, intuitive HR, benefits, payroll, and employee engagement software purpose-built for small and medium-sized businesses.
TriNet announced that via the acquisition of Zenefits, the firm will be in turn diversifying its product offering to comprise an Administrative Services Organization (ASO), empowering TriNet to dynamically service SMBs throughout their lifecycle. Upon the accomplishment of the deal, the addition of Zenefits will expand TriNet\’s ecosystem to serve more than 24,000 SMBs and approximately 600,000 workforces.
Upon the closure of the deal, 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.
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TriNet President and CEO, Burton M. Goldfield stated: “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.”
Burton added: “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-sized businesses will be expanded to include an ASO product offering—leveraging Zenefits\’ industry-leading cloud HR platform.\”
He further explained regarding the acquisition: “We look forward to welcoming the Zenefits team with their extensive SMB expertise as we usher in the next phase of TriNet\’s growth.”
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Jay Fulcher, CEO, Zenefits commented regarding the acquisition agreement stating: “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.\”
He also added: \”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.”
The acquisition is poised to get closed in the forthcoming months, subject to closing circumstances, comprising of the receipt of regulatory approvals.
