Attention HR professionals using Kronos or Ultimate Software: You’re about to get more bang for your buck! The two companies recently announced they would be merging into one massive human capital management (HCM) software solutions company.
Upon closing, the combined company will have revenues of approximately $3 billion, more than 12,000 employees worldwide, and an enterprise value of $22 billion, with further plans for growth, including the addition of 3,000 employees over the next 3 years.
Kronos and Ultimate each have a proven track record of delivering the industry’s most innovative solutions to help organizations around the world drive better business outcomes, achieve a competitive advantage, and create engaged workforces.
“We expect the combined offerings of these two companies to provide an unparalleled human capital management and workforce management software solution for customers; one that is extremely competitive in the marketplace, backed by a remarkable culture and focus on exceeding customer expectations,” says Aron Ain, longtime Kronos CEO, in an e-mail to HR Daily Advisor.
“The combination of Ultimate and Kronos paves the way to deliver the next generation of employee-facing solutions that will set the standard for the workforce of the future,” says Adam Rogers, CEO of Ultimate, in a press release announcing the news. “This merger will enable our more than 12,000 inspired people around the world to deliver innovation in human capital management faster than ever before. Both companies remain fully committed to their core strengths as well as to the combined benefits that the new company will bring to employees and customers.”
How Will This Merger Impact HR Pros?
The new company, whose name is yet to be announced, will become one of the world’s largest cloud companies. This merger will create the world’s most innovative HCM and workforce management company to help organizations across all industries manage their people more effectively with an unparalleled combination of cloud solutions. The combined company will have enhanced scale and an even stronger position in the fast-growing HCM marketplace.
The new company will bring together the best of each company’s award-winning solutions—Ultimate’s UltiPro HCM and Employee Experience products with Workforce Dimensions from Kronos, Kronos Workforce Ready, and other solutions from Kronos—with an unwavering commitment to delighting customers and exceeding their expectations.
Ain will be the CEO and Chairman of the combined company, guiding an experienced executive team comprising leaders from both Ultimate and Kronos. “I have never been more excited in my 40 years at Kronos! Combining our passionate and extremely talented Kronos and Ultimate teams will create a company that is truly People Inspired,” Ain says about the merger.
“Together, we will expand the value we deliver to customers and create the industry’s most comprehensive human capital management and workforce management solution for organizations around the world. With a combined 70 years in business, we are poised for tremendous success,” Ain adds. “For our employees, customers, and partners there is an even better future ahead. Our top priority as we complete this merger is to ensure a smooth transition for our people and continue to exceed our customers’ expectations.”
“The merger of Kronos and Ultimate brings together two exceptional, industry-leading companies that are dedicated to delivering great technology services and—just as importantly—creating outstanding employee cultures of their own,” says David Tunnell, partner of Hellman & Friedman, the controlling shareholder of both Kronos and Ultimate. “After many years of a growth-oriented partnership with Kronos, and a more recent, successful relationship with Ultimate, we have strong conviction in the deep compatibility of these two companies and the unlimited growth potential of this sector. We know that by creating an inspiring place to work and putting people first, this combined company will thrive for years to come.”
Speaking on the impact of the merger, Katherine Leisinger, IT Director at Innovative Employee Solutions said, “The scope of Human Resources software has expanded greatly over the past decade to include total talent management and employee engagement in addition to traditional functions such as payroll, recruitment, and time tracking. This merger allows the combined company to drive efficiencies in core competencies, and to focus additional resources on new functionality that will lead the way for the industry as a whole to follow. As a 10 year plus client of Kronos, we are pleased to see them engaging in a strategic alliance that will broaden their suite of services to include a strong suite of HR capital solutions.”