General Atlantic agrees $98m bolt-on

The firm is buying Florida-based Gevity HR to expand its human resources portfolio company TriNet.

Human resources provider TriNet, whose majority investor is growth equity firm General Atlantic, is acquiring Florida-based outsourcing company Gevity HR for $4 a share in an all-cash transaction valued at around $98 million.

Once the deal is completed, TriNet – which provides HR outsourcing services to small companies – will expand to more than 8,000 customers in US states such as California, Florida, Texas, New York and Colorado. The acquisition is expected to be finalized in the second quarter following approval by Gevity shareholders.

TriNet has seen revenue growth of nearly 75 percent in the last three years and completed several acquisitions, including LMC Resources, John Parry & Alexander and the Outsource Group. General Atlantic bought a controlling stake in the company following an undisclosed investment in June 2005.

The firm focuses on the information technology and intellectual property sectors, with around $13 billion of capital under management and offices in North America, South America, Hong Kong, Germany, India and the UK. It is reportedly one of several private equity firms seeking to acquire Indian IT services giant Satyam Computer Services.