Skip to main content
The Globe and Mail
Support Quality Journalism.
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
per week
for first 24 weeks

Enjoy unlimited digital access
Cancel Anytime
Enjoy Unlimited Digital Access
Get full access to
Just $1.99per week for the first 24weeks
Just $1.99per week for the first 24weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(}function setPanelState(o){dom.root.classList[o?"add":"remove"](,dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); } //

Ceridian HCM Holding Inc. has upsized its planned initial public offering, saying it hopes to raise more than US$500-million selling stock to the public plus an additional US$100-million worth of shares to its private equity backers Thomas H. Lee Partners L.P. and Cannae Investors LLC.

Ceridian, a human resources software firm based in Minneapolis but managed by Canadian chief executive David Ossip out of Toronto, said Thursday that it plans to issue 21 million shares to the public at US$19 to US$21, with an option for its underwriting syndicate – led by Goldman Sachs, JP Morgan, Credit Suisse and Deutsche Bank – to buy an additional 3.15 million shares. Canada’s CIBC Capital Markets and Canaccord Genuity are also part of the underwriting syndicate. The stock will trade under the ticker CDAY on the New York and Toronto stock exchanges.

At the current range, Ceridian would have a market capitalization of almost US$3-billion.

Story continues below advertisement

It plans to use net proceeds to redeem the US$475-million principal of its outstanding 11-per-cent senior notes due 2021 and pay a portion of the interest.

Ceridian, one of the oldest tech firms in the United States, became a hot cloud-software company under Mr. Ossip’s leadership after it bought his Toronto software firm Dayforce Inc. six years ago for more than US$100-million and made him CEO.

Mr. Ossip, who had previously led successful Toronto-based HR software firm Workbrain Corp., transformed Ceridian from a slowly declining payroll processor – whose dated software ran primarily on mainframes – into a savvy, web-based provider of subscription-software services, not just for payroll but other areas of HR management as well.

The Dayforce platform now has 3,000 customers, having grown at a compound rate of more than 60 per cent since 2012, with revenue of US$751-million last year. It is also considered one of the key disruptive forces in the HR services industry.

Mr. Ossip has been richly rewarded for improving Ceridian’s prospects after it struggled following a US$5.3-billion leveraged buyout in 2007 led by Thomas H. Lee and Cannae. He earned US$17.7-million in compensation last year, predominantly in option and share awards, and his 4.6 million shares would be worth more than US$90-million at the middle of the proposed price range.

As part of the transaction, Ceridian said it will spin out to existing shareholders its interest in an online-software platform called LifeWorks, which employers use to offer assistance and wellness programs – as well as perks and discounts – to employees.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow the author of this article:

View more suggestions in Following Read more about following topics and authors
Report an error Editorial code of conduct
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to If you want to write a letter to the editor, please forward to
Comments are closed

We have closed comments on this story for legal reasons or for abuse. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies