Feb 4, 2019

Hellman & Friedman leads acquisition of Ultimate Software

Dan Primack, author of Pro Rata

Hellman & Friedman agreed to lead an $11 billion acquisition of Ultimate Software, a Weston, Fla.-based provider of human capital management cloud software.

Why it matters: No one on the outside seemed to see this mega-deal coming. There were zero media reports about a pending takeover, and neither Goldman Sachs nor Deutsche Bank were even covering the company until last week (when DB's "buy" rating clearly beat out Goldman's "neutral").

  • Other investors in the buy-side consortium include The Blackstone Group, GIC, CPPIB and JMI Equity. The deal includes a 50-day "go shop" provision, during which time Ultimate Software can solicit superior offers.

The bottom line: The $331.50 per share price represents over a 19% premium to Friday's close price, but just about matches its $330.73 all-time high set last September.

Go deeper: In hot cybersecurity market, acquisitions crowd out IPOs

Go deeper

Unemployment rate falls to 13.3% in May

Data: Bureau of Labor Statistics; Chart: Axios Visuals

The U.S. unemployment rate fell to 13.3% in May, with 2.5 million jobs gained, the government said on Friday.

Why it matters: The far better-than-expected numbers show a surprising improvement in the job market, which has been devastated by the coronavirus pandemic.

The difficulty of calculating the real unemployment rate

Data: U.S. Department of Labor; Note: Initial traditional state claims from the weeks of May 23 and 30, continuing traditional claims from May 23. Initial PUA claims from May 16, 23, and 30, continuing PUA and other programs from May 16; Chart: Andrew Witherspoon/Axios

The shocking May jobs report — with a decline in the unemployment rate to 13.3% and more than 2 million jobs added — destroyed expectations of a much worse economic picture.

Why it matters: Traditional economic reports have failed to keep up with the devastation of the coronavirus pandemic and have made it nearly impossible for researchers to determine the state of the U.S. labor market or the economy.

2 hours ago - Sports

How coronavirus could reshuffle the sports calendar

Illustration: Eniola Odetunde/Axios

The NBA's Board of Governors approved Thursday the league's 22-team plan to resume play at Walt Disney World — a plan that also includes tentative dates for both this season and next.

Why it matters: The league's proposed trip to Disney World not only impacts this season but could have a domino effect that impacts seasons in the future — and could permanently change what time of year the NBA plays its games.