Kronos Lays Foundation for Next Phase of Growth; Adds World-Class Investors at $4.5 Billion Enterprise Valuation

  Kronos Lays Foundation for Next Phase of Growth; Adds World-Class Investors
  at $4.5 Billion Enterprise Valuation

Business Wire

CHELMSFORD, Mass. -- February 20, 2014

Kronos Incorporated^1 today announced that it has entered into a definitive
agreement to effect a recapitalization of the company through a $750 million
equity investment by funds managed by Blackstone (NYSE:BX) and GIC. Blackstone
and GIC will invest in Kronos alongside the original investors Hellman &
Friedman and JMI Equity. Hellman & Friedman will remain the majority investor
in the company.

News Facts

  *The addition of Blackstone and GIC as investors in Kronos brings further
    global expertise, resources, and insight to the company.
  *The new investment by Blackstone and GIC will enable Kronos to accelerate
    the pace of innovation that has fueled its growth in recent years. It will
    also enable the Kronos management team to continue to take a long-term
    view of how best to deliver superior products and services to its
    customers.
  *Aron Ain, chief executive officer of Kronos, will continue to lead the
    organization.
  *Kronos, previously publicly traded on NASDAQ, was taken private by Hellman
    & Friedman and JMI Equity in 2007, in a transaction valued at
    approximately $1.8 billion. Since that time, Kronos revenues have
    increased 45 percent and earnings before interest, tax, depreciation, and
    amortization (EBITDA) increased 114 percent. Kronos is fast approaching $1
    billion in annual revenue.
  *The transaction is subject to customary closing conditions, including
    receipt of regulatory approvals, and is expected to close in the first
    half of 2014.
  *Simpson Thacher & Bartlett LLP served as legal counsel for Kronos and
    Hellman & Friedman. Morgan Stanley and Jefferies served as financial
    advisors to Kronos. Kirkland & Ellis LLP and Blackstone Advisory Partners
    served as advisors to Blackstone.

Supporting Quotes

  *Aron Ain, chief executive officer, Kronos

“We are thrilled to have Blackstone and GIC join the Kronos team. Their
significant investments validate our company’s strategy and growth potential
and support us as we rapidly extend our Kronos Cloud offerings; expedite our
pace of product innovation; continue to broaden our vertical expertise; and
accelerate our global expansion strategy.”

  *David Tunnell, managing director, Hellman & Friedman

“Kronos’ exceptional value proposition and the strength and depth of the
management team are the core reasons why Kronos has been one of our most
successful investments.We continue to see tremendous opportunity and are
excited to work together with Blackstone, GIC, JMI Equity, and the Kronos
management team to position the company for the next phase of growth.”

  *Chinh Chu, senior managing director and co-chair, Blackstone

“Kronos has the unique combination of industry leadership and expertise,
entrepreneurial spirit, market-leading products, and a loyal customer base.
The company has tremendous potential and we are excited to partner with the
Kronos management team on growth initiatives.”

  *Eric Wilmes, head, North America Direct Investments Group, GIC Special
    Investments

“As a long-term investor, GIC has been following the Kronos story since
Hellman & Friedman’s initial investment. The company’s track record speaks for
itself, and we are delighted to work with management and our partners to drive
Kronos’ continuing success.”

About Kronos Incorporated

Kronos is the global leader in delivering workforce management solutions in
the cloud. Tens of thousands of organizations in more than 100 countries —
including more than half of the Fortune 1000^® — use Kronos to control labor
costs, minimize compliance risk, and improve workforce productivity. Learn
more about Kronos industry-specific time and attendance, scheduling, absence
management, HR and payroll, hiring, and labor analytics applications at
www.kronos.com. Kronos: Workforce Innovation That Works^™.

About Hellman & Friedman

Hellman & Friedman LLC is a leading private equity investment firm with
offices in San Francisco, New York, and London. Since its founding in 1984,
H&F has raised and, through its affiliated funds, managed over $25 billion of
committed capital. The firm focuses on investing in superior business
franchises and serving as a value‐added partner to management in select
industries including software, financial services, insurance, business and
marketing services, internet and digital media, media, healthcare, and energy
and industrials. For more information on H&F, please visit www.hf.com.

About Blackstone

Blackstone is one of the world’s leading investment and advisory firms. We
seek to create positive economic impact and long-term value for our investors,
the companies we invest in, the companies we advise and the broader global
economy. We do this through the commitment of our extraordinary people and
flexible capital. Our asset management businesses include investment vehicles
focused on private equity, real estate, hedge fund solutions, non-investment
grade credit, secondary funds, and multi asset class exposures falling outside
of other funds’ mandates. Blackstone also provides various financial advisory
services, including financial and strategic advisory, restructuring and
reorganization advisory and fund placement services. Further information is
available at www.blackstone.com. Follow Blackstone on Twitter @Blackstone.

About GIC

GIC is among the world’s largest fund management companieswith AUM of well
over US$100 billion. Founded in 1981 to manage Singapore’s foreign
reserves,GIC is an establishedglobal private equity investor. We invest in
private equity funds as well as directly in companies, partnering with
management teams and our fund managers. Our private equity universeranges
from venture capital, growth capital, andleveraged buyouts to special
situations such as mezzanineand distressed debt andsecondaries. The
investment teams add value to the boards and management of the investee
companies by providing advice and access to a global network of relationships.
GIC is headquartered in Singapore with a network of offices in nine cities
worldwide. For more information, please visit www.gic.com.sg.

About JMI Equity

JMI Equity is a growth equity firm focused on investing in leading software
and technology-enabled services companies. Founded in 1992, JMI has invested
in 112 businesses in its target markets and has over $2.1 billion of committed
capital under management. JMI provides capital for growth, recapitalizations,
acquisitions and buyouts. Representative investments include DoubleClick,
Eloqua, Halogen (TSX: HGN), PointClickCare, PowerPlan and ServiceNow (NYSE:
NOW). For more information on JMI Equity, please visit www.jmi.com.

Footnote 1: Kronos Incorporated’s ultimate parent entity, Kronos Parent
Corporation, officially entered this agreement. Note to reporters: cite
agreement as being entered by Kronos Incorporated. (Kronos Parent Corporation
is a legal entity.)

© 2014 Kronos Incorporated.  Kronos and the Kronos logo are registered
trademarks and Workforce Innovation That Works is a trademark of Kronos
Incorporated or a related company. All other trademarks are property of their
respective owners.

Contact:

Kronos Incorporated
Michele Glorie, +1 978-947-2855
michele.glorie@kronos.com
 
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