Ceridian files non-offering preliminary prospectus

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By Ted Liu

Ceridian HCM Holding Inc. has filed a non-offering preliminary prospectus become a reporting issuer in Ontario, in connection with its proposed initial public offering (IPO).

Ceridian has filed with the U.S. Securities and Exchange Commission (SEC) with respect to an IPO of its common stock in the United States and a con-current private placement with its controlling shareholders.

Ceridian has applied to have its common stock listed on the New York Stock Exchange (NYSE) and on the Toronto Stock Exchange (TSX) under the symbol “CDAY”.

Minneapolis, Minnesota based Ceridian is a global HCM software company. Dayforce, its flagship cloud HCM platform, provides HR, payroll, benefits, workforce management, and talent management functionality. Ceridian Canada is headquartered in Winnipeg, Manitoba.

Ceridian was acquired in 2007 by Thomas H. Lee Partners, L.P. and Cannae Holdings, Inc. (NYSE: CNNE) In April 2012, Ceridian acquired Dayforce Corporation, which had built Dayforce. Dayforce founder, David D. Ossip, was named CEO of Ceridian thereafter. Ossip assumed Chairman position in August 2015.

With exception of EVP & Chief People and Culture Officer, Lisa M. Sterling, and EVP & Chief Revenue Officer Ted P. Malley, which are based in Nebraska and California respectively, all other Ceridian’s executive officers are based in Canada: Ossip (Markham/Toronto), Paul D. Elliott, President & COO (Markham/Toronto), Arthur Gitajn EVP & CFO (Markham/Toronto), Scott A. Kitching, EVP & General Counsel and Assistant Secretary (Winnipeg), Ozzie J. Goldschmied, EVP & CTO (Markham/Toronto).

Upon closing the offering, Gerald C. Throop, a director of NASDAQ Canada Inc., will join Ceridian board of directors that includes Ossip, three representatives from Thomas H. Lee Partners and two representatives from Cannae Holdings.

As of December 31, 2017, Ceridian had 4,212 active employees, including 3,645 in North America, Europe, and Australia, and 567 in Mauritius.

Ceridian’s total revenue increased from US $693.9 million in 2015 to $704.2 million in 2016 and to $750.7 million in 2017. It generated HCM operating profit (loss) of $(1.1) million in 2015 compared to $(8.6) million in 2016 and $33.0 million in 2017. It generated HCM Adjusted EBITDA of $99.7 million in 2015 compared to $88.9 million in 2016 and $117.8 million in 2017.

photo credit: Ceridian