Florida-based Gevity HR Inc. has entered a definitive merger agreement to be acquired by TriNet Group Inc., a provider of human resources (HR) outsourcing services for small companies.

Under the arrangement, TriNet will pay $4.00 per share in cash for outstanding common stock of Gevity in a transaction valued around $98 million. The deal represents a premium of about 97 percent above the stock's March 4 closing price.

It may be noted that, Boards of Directors of TriNet and Gevity have already unanimously approved the agreement.

Gevity HR, Inc. provides payroll, insurance and human resource (HR) outsourcing services to small and medium-sized businesses in the United States.

Post acquisition, TriNet will become one of the leading HR outsourcing companies serving small businesses in the United States, with more than 8,000 customers employing more than 130,000 people nationwide.

The acquisition is expected to be completed in the second quarter, after receipt of the requisite approvals.

After the announcement, the stock price of the Gevity climbed to $3.78 on Nasdaq. The stock gained 87% over its previous close of $2.03.