Irvine’s Exult Lands $1-Billion Personnel Deal With B of A

Bank of America Corp. said it has tentatively agreed to turn over certain personnel functions to Exult Inc., an Irvine provider of Web-enabled human-resources service for large companies, in a 10-year contract worth $1 billion.

A memorandum of understanding, which the two companies signed, provides the framework for a broad business relationship in which Exult would provide process management and transaction services in the areas of human resources and finance for the bank and its 150,000 employees.

The bank, based in Charlotte, N.C., said it expects the contract will save it more than 10% on overhead expenses.

The two parties said they expect to complete a definitive agreement within two months.

As part of the contract, Bank of America would acquire 5 million shares, or 5.5%, of Exult stock and a warrant to purchase an additional 5 million shares.

Exult’s stock gained $4.13 to close at $15.75 in Nasdaq trading. Bank of America’s stock gained $2 to close at $46.56 a share on the New York Stock Exchange.