Ceridian to be acquired for $5.3 billion in cash

NEW YORK (CNNMoney.com) -- The human resource services firm Ceridian Corp. said it would be purchased by two firms for $5.3 billion in cash, the company announced late Wednesday.

Ceridian (Charts) shares soared nearly 5 percent in after-hours trading on the news.

Minneapolis-based Ceridian said it will be divvied up between the private equity firm THL Partners and the title insurance company Fidelity National Financial (Charts, Fortune 500) (FNF).

As part of the deal, Ceridian shareholders will get $36 in cash, a 17 percent premium to the stock's closing price on February 12th of this year, just before the company announced it was pursuing strategic alternatives to maximize shareholders' value.

"The Board, along with its financial and legal advisors, evaluated a broad range of alternatives and concluded that the sale of Ceridian to THL Partners and FNF represents the best and most certain way to achieve that goal," Ceridian Chairman L. White Matthews III said in a statement.

Fidelity National Financial, which will have a minority stake in Ceridian, highlighted Ceridian's customer relationships, predictable revenue and strong cash flow.

The deal still requires shareholder and antitrust approval, Ceridian said.