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M&A Report: Ultimate Software, Harry’s and Uber In The News

M&A Report: Ultimate Software, Harry’s and Uber In The News

In keeping with our mission to provide comprehensive advertising analysis, MediaRadar puts together a report of the most important mergers and acquisitions news each week. Stay in the loop, whether you sell advertising space or focus on business development.

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This week, Hellman & Friedman acquires Ultimate Software Group, Edgewell Personal Care buys DTC shaving brand Harry’s, and everyone reflects after the Uber IPO on Friday.

Hellman & Friedman to Build Up Ultimate Software

Private equity company Hellman & Friedman has completed its acquisition of HR software company Ultimate Software Group, Inc. for $11 billion. Ultimate Software is a global cloud-based provider of human capital management and employee experience software solutions. The company serves over 6,000 companies worldwide and generated over $1.1 billion revenue in 2018.

Ultimate believes that the financial backing from Hellman & Friedman will allow the company to bring innovative features and high quality services to its customers. The deal “allows us to make additional, prudent investments in our products and services to better serve our customers,” said Scott Scherr, CEO, president, and founder of Ultimate.

Edgewell Personal Care Edges Into the Online Market With Harry’s Inc.

Edgewell Personal Care Company, owner of brands like Banana Boat and Wet Ones, is acquiring Harry’s Inc., a DTC startup with a focus on razors and personal care. Since its founding in 2013, Harry’s has been a competitor to Edgewell’s Schick razor brand. The deal is valued at $1.37 billion.

Harry’s began as an online brand before expanding to traditional retail stores. Edgewell believes that acquiring Harry’s will help the company better capture online market share and compete with bigger rivals like Unilever and P&G.  

While it’s tempting to compare the acquisition to Unliver’s $1 billion purchase of Dollar Shave Club in 2016, Edgewell CEO Rod Little said the comparison is not a good one. “”You don’t often see a challenger company combine with an incumbent in what is effectively a merger of equals,” Harry’s co-founder Andy Katz-Mayfield told CNBC. “Edgewell is not a massive consumer packaged goods company, it is a midsize company. [And] Harry’s is not an average start-up, it’s totally integrated and omnichannel.”

Uber Goes Public, Learning From Lyft

Uber is closer than ever to making its massive public offering. Uber finally went public on Friday, landing at $45 — 4 percent up from its initial price. Uber’s IPO has been closely watched since the ride-hailing startup first announced its intention to go public six months ago.

Uber expected to raise just over $8 billion from the IPO with a valuation of $83.85 billion at the high end. It was one of the largest offerings on the US market since Alibaba’s 2014 offering, which raised over $20 billion for the company.

Once just a ride-hailing app, Uber has since expanded into a transportation empire that includes food delivery and a bicycle-sharing system. The transportation giant looks to keep that expansion going with plans to leap into the freight industry and healthcare.

In Other News

Pet medication and wellness company PetIQ announced that it will acquire the Animal Health division of pharmaceutical company Perrigo for $185. Pfizer entered into an agreement to acquire all shares of Therachon Holding AG, a private biotechnology company that focuses the treatment of rare diseases. Hudson’s Bay Co. has announced its intention to sell Lord & Taylor, the hallmark of Fifth Avenue along with its 45 locations.

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