The agreement enabled either party to terminate if federal regulatory approval was not granted by mid-May, and the Justice Department recently asked for additional information under the Hart-Scott-Rodino Antitrust Act.
But API also faced strong opposition to the sale from its customers, who feared lower levels of service and innovation, and a migration to Kronos products, says CEO J.P. Fingado. "The clients just became incredibly vocal with Justice and us," he says.
Francisco Partners, a private equity firm in San Francisco, bought API in 2008. The acquisition was made with the intent to have a long-term partnership with API, but the Kronos offer was very attractive, Fingado says. Now, API will continue to operate as an independent entity under Francisco Partners' portfolio, he adds.
--Joseph Goedert
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