Shares of HR software maker, the Ultimate Software Group, skyrocketed after the company said it agreed to be bought by a group of investors for $11 billion in cash.
That's about $331 per share, a 19-percent premium to Ultimate Software's closing price on Friday.
Reuters correspondent Carl O'Donnell: (SOUNDBITE) (English) REUTERS CORRESPONDENT CARL O'DONNELL, SAYING: "It's the biggest LBO that's happened so far this year, and it really shows how intense the appetite is among private equity firms for acquisition of software companies.
In a lot of respects, software companies, like Ultimate Software, are perfect LBO targets.
They have very stable revenue, and it's a fast growing market.
So we're seeing capital pour into this space and this $11 billion deal is, you know, a particularly expensive example of that." The group of investors buying Ultimate Software includes private equity firms Hellman & Friedman and Blackstone.
Ultimate Software brought in more than $1 billion in revenue in 2018.
It said it expects close the deal in mid-2019.
It competes with companies, such as Workday and ADP, in an industry that is expected to grow to $22 billion in 2023, according to a report by Allied Market Research.