TriNet Group, Inc. , a leading provider of comprehensive and flexible human capital management (HCM) solutions for small and medium-size businesses (SMBs), today announced its plan to launch a fixed price tender offer to repurchase approximately $640 million in value of shares of TriNet common stock at a price of $107.00 per share, which is expected to commence on August 1, 2023. In addition, the Company signed a separate agreement on July 30, 2023 to repurchase a minimum of approximately $360 million in value of shares from affiliates of its largest stockholder, Atairos Group, Inc. . Assuming the Tender Offer is fully subscribed, both transactions together will result in the repurchase of approximately $1 billion in shares.
“Today is an exciting day for TriNet as we announce our intention to launch transactions to buy back $1 billion of TriNet stock,” said Burton M. Goldfield, TriNet’s President and CEO. “For some time, we have believed that TriNet’s stock represents significant value, especially in light of our recent financial and operating performance. With our optimism around our long-term outlook, we believe now is a great time to take bold action around our capital structure.”
“We have long valued Atairos’ share ownership and Board of Directors participation,” Goldfield continued. “As a part of these buybacks, Atairos intends to maintain its current approximate pro rata percentage ownership, but has also agreed to sell additional shares if our tender offer is undersubscribed, potentially reducing their ownership to no less than 30%. We welcome their continued ownership and Board participation.”
“TriNet is a dynamic growth company with a proven business model and strong corporate cash flows,” said Kelly Tuminelli, TriNet’s Chief Financial Officer. “Through this action, we are using our financial resources to reduce TriNet’s overall weighted average cost of capital. This is in line with our recently announced financial policy, while accreting long term value for all of our shareholders.”