Thomas H. Lee-Backed Ceridian Raises $462 Million in U.S. IPO

(Bloomberg) -- Ceridian HCM Holding Inc., the software maker backed by Thomas H. Lee Partners, raised $462 million in its initial public offering.

The company priced 21 million shares at $22 apiece, above the $19 to $21 price range marketed to investors, according to data compiled by Bloomberg. The IPO gives Ceridian a market value of almost $3 billion, according to the number of shares to be outstanding after the offering and a concurrent private placement.

Ceridian makes human capital management, or HCM, software to help its more than 3,000 customers with 2.5 million active users manage HR functions, payroll and benefits, according to its IPO filing. The Minneapolis-based company competes with companies such as Workday Inc. and Automatic Data Processing Inc.

Ceridian posted $751 million in total revenue last year, up 6.6 percent from a year earlier, it said in the filing. In 2017, its net loss excluding non-controlling interest was $9.2 million, down from $93 million a year earlier.

Thomas H. Lee is expected to own 51 percent of the shares after the offering, according to the filing. Investment firm Cannae Holdings Inc., which also held private shares, will have a 27 percent stake after the IPO. Thomas H. Lee and Cannae also intend to buy $100 million worth of stock in a private placement concurrent with the IPO.

Goldman Sachs Group Inc. and JPMorgan Chase & Co. led the offering. Ceridian’s shares are expected to trade Thursday on the New York Stock Exchange under the symbol CDAY.

To contact the reporter on this story: Alex Barinka in New York at abarinka2@bloomberg.net.

To contact the editors responsible for this story: Elizabeth Fournier at efournier5@bloomberg.net, Michael Hytha

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