Top executive officers of Ultimate Software would be collectively $102 million richer as result of a planned buyout of the company by a private equity firm, according to the Weston-based company’s recent securities filing.
Founder and CEO Scott Scherr alone would gain $37 million as a result of the $11 billion transaction, should it be approved by shareholders.
Many other Ultimate Software employees are likely to benefit from the transaction as well, as the company gives restricted stock to employees upon hire.
Ultimate Software, which designs software for managing human resources, agreed on Feb. 3 to be sold to San Francisco-based private equity firm Hellman & Friedman. Stockholders are slated to receive $331.50 in cash for each share of Ultimate’s common stock held upon the closing of the transaction.
The Securities and Exchange Commission filing earlier this month also reveals termination fees of $550 million if the private equity firm backs out and $331 million if Ultimate withdraws from the deal.
A special meeting for shareholders will be held to vote on the merger, though that date was not disclosed in the proxy filing by Ultimate. A company spokeswoman said the meeting date is not yet confirmed.
The purchase already has gotten the green light to proceed from federal regulators.
Ultimate employs more than 5,100 employees, including 1,650 in Weston. The company was founded in 1990 and has operated in Weston since 1999.
Customers include the Miami Heat basketball team; Tampa-based Bloomin’ Brands, which owns Outback Steakhouse and Bonefish Grill restaurants; and national and international brands including Culligan International, Red Roof Inn, Subway, Texas Roadhouse and Yamaha Corp. of America.
Ultimate’s stock is traded on Nasdaq and has a 52-week range of $219.97 to $365.86 a share.
Ultimate Software was begun by Scherr with a philosophy of “People First,” meaning its employees come first. The company was one of three South Florida companies ranked among the 2019 “100 Best Companies to Work For” by Fortune, and topped Fortune’s “Best Workplaces in Technology” in 2019.