• Triton

Here’s one way to think about Ceridian and Pivotal

Technology companies are supposed to be growth companies.

And in theory technology companies go public to raise money so they can grow.  

That is unless those companies are Ceridian and Pivotal (and Spotify, but that’s another matter for another day).

Along with slow growth of 7% and 22%, respectively, Ceridian and Pivotal are also sponsor-backed liquidity vehicles that have taken their names from legacy businesses that used to do something else, reshuffled the asset configuration in an almost incomprehensible way, recast themselves in of-the-moment buzzwords, and will remain controlled by their current owners post-IPO.

We’ve seen other situations like this in recent years, notably First Data (KKR vs. THL) and SecureWorks (also issuing forth from Dell).  The analogies are imperfect but the Triton Scores are remarkably similar: First Data – 5.51 Secureworks – 5.84 Ceridian – 5.42 Pivotal – 5.44 If the parallels hold at all, these two non-growth companies will issue non-growth stocks.