Ceridian Corp, a Minneapolis-based information services and payroll firm, says it has signed a deal to acquire ABR Information Services Inc in a deal valued at $750m. ABR, based in Palm Harbor, Florida, provides benefits administration, payroll, and human resource services.
Ceridian will pay $25.50 in cash for all outstanding ABR shares and says it will fund the deal with existing cash and borrowings. The company reckons the deal will be slightly dilutive to projected earnings per share in 1999 and 2000, it should be immediately accretive to cash flow and is expected to effect significant growth in Ceridian’s HR business. The transaction is expected to be completed in the second quarter.
