TriNet, a preferred HR solutions partner for small and mid-sized businesses, announced a definitive agreement for the acquisition of Zenefits on December 23. With the move, Triet hopes to consolidate its suite of digital solutions and expand its value proposition.
Zenefits is a cloud HR platform by Francisco Partners, a global investment firm with a focus on technology businesses. The platform helps small and medium businesses (SMBs) leverage the best of cloud technology with purpose-driven software solutions that span the areas of employee benefits, payroll and engagement. The acquisition enhances TriNet’s SMB targeted product offering with the Administrative Services Organization (ASO) solution, allowing it to be the end-to-end lifecycle partner for SMBs. The completion of the deal will build TriNet’s digital prowess, empowering it to service over 600,000 employees in 24,000 SMBs.
“I am passionate about providing comprehensive solutions for SMBs and the acquisition of Zenefits will expand and complement the TriNet offering—beyond a Professional Employer Organization or PEO. The timing is perfect for this acquisition given the recent small business boom and the number of new entrepreneurs that can benefit from our service offering. TriNet's commitment to powering the success of small and medium-size businesses will be expanded to include an ASO product offering—leveraging Zenefits' industry-leading cloud HR platform. We look forward to welcoming the Zenefits team with their extensive SMB expertise as we usher in the next phase of TriNet's growth."
- TriNet President and CEO, Burton M. Goldfield
The completion of the deal will make Zenefits a fully owned subsidiary of TriNet, making Francisco Partners a TriNet stockholder. In addition, TriNet is slated to become the preferred service provider for PEO and HRIS for portfolio companies of Francisco Partners.
Over the past few years, we've successfully transformed our business into a leading SaaS 'people platform,' and we are incredibly proud of what we have achieved and the position we are now in to meet the needs of small and mid-sized businesses. Upon completion of the deal and as part of TriNet, Zenefits will have the resources to continue to serve SMBs today, tomorrow and well into the future.
- Zenefits CEO, Jay Fulcher
The acquisition is slated to be completed in the next few months, considering all customary closing conditions are met, including regulations.