Bradenton human resources firm Gevity has agreed to be bought by a private firm in the San Francisco area for about $98 million in cash.
TriNet Group Inc. is paying $4 a share for Gevity, almost double its closing price Wednesday of $2.03 per share. Gevity shares jumped 84 percent to $3.73 in early trading today.
The combined company will be privately held and operate under the leadership of TriNet chief executive Burton Goldfield, Gevity said in a statement. TriNet's largest shareholder, equity firm General Atlantic, LLC, also owns about 9.5 percent of Gevity's common stock.
ValueAct Capital Management, which is Gevity's largest shareholder and is also represented on Gevity's board, has agreed to vote its shares in favor of the merger, the company said.
Gevity handles HR outsourcing for small and mid sized companies on behalf of about 100,000 employees nationwide. In January, it cut 10 percent of its workforce, or roughly 75 jobs.
Gevity has been exploring the option of a sale since July. It expects the deal to close in the second quarter of 2009.
Because of the merger, the company has postponed its annual meeting, originally scheduled for May 20. It still plans to release fourth quarter earnings next week.