Ultimate Software, which creates a cloud-based human resources management software has been acquired by Hellman & Friedman Capital Partners in an $11 Bn deal.

Florid-based HRM software company, Ultimate Software, was founded in 1990 by Scott Scherr. He will continue in his existing role along with the rest of the senior management team. The company helps in managing employee relationships from the time of recruitment to their retirement.

The cash deal will enable the HRM software company to invest in innovative products and services and also reward deserving employees.

According to Scherr, this change will translate into long-term and short-term benefits for about 5,144 employees of Ultimate.

“Since all of our employees are given equity in Ultimate when they join us, as stockholders, this transaction will result in immediate financial upside for them,” said Scherr in a company statement.

As cloud-based solutions to managing human capital resources become the coveted solutions for HR professionals across the board, payroll tools such as Ultimate Software are more likely to evolve and increase their reach as compared to non-cloud based solutions.

Popular brands such as Subway Restaurants and Red Roof Inns are using this software to manage their payroll and benefits. The software package now also includes analytics tools which help in tracking and monitoring the performance of employees.

Ultimate’s Board of Directors has unanimously voted in favor of the acquisition and recommends shareholders to do the same. The stockholders are set to receive $331.50 per share in cash as the company goes private.