Ceridian Planning $200M IPO
Human resources software and services company Ceridian HCM Holdings Inc. confirmed on Thursday plans for an initial public offering in which it hopes to raise $200 million.
Buzz over the Bloomington-based company’s likelihood of going public began in January when Ceridian revealed it had submitted a registration filing known as the Form S-1 to the U.S. Securities and Exchange Commission.
In its regulatory filing released Thursday, Ceridian had yet to finalize how many shares it planned to offer or the price range for the shares.
Ceridian said money generated from its IPO would largely go to pay down the roughly $1.12 billion in debt it owes its private equity owners.
Although based in Minnesota, Ceridian is largely operated out of Toronto. In its registration, the company applied to have its stock listed on the New York Stock Exchange and the Toronto Stock Exchange. Ceridian shares would sold under the symbol “CDAY.”
The IPO will technically mark Ceridian’s re-entry into the stock exchange. The company was delisted from the New York Stock Exchange in 2007 upon its sale to financial services firms Thomas H. Lee Partners and Fidelity National Financial.
Ceridian’s business plan took a turn in 2012 when it completed its acquisition of Dayforce, which made SaaS applications to assist with human resources, payroll, tax, benefits and workforce management. Following the transaction, Dayforce head David Ossip took over Ceridian as its CEO and has led the company’s transformation into a cloud-based SaaS human capital management (HCM) business that counts Guitar Center and the Houston Texans among its customers.
Ceridian reported $750.7 million in revenue and a net loss of $9.2 million in its 2017 fiscal year. The result, however, was much improved from its $704.2 million in revenue and $92.9 million net loss from the year prior.
In tandem with its IPO, Ceridian will be spinning off its employee engagement and wellbeing business LifeWorks. The company plans to distribute its interest in LifeWorks to existing stockholders on a pro rata basis. Without LifeWorks, Cerdian expects to take a roughly $80 million hit to its revenue, based on LifeWorks’ performance last year.