Kronos and Ultimate Software merge to create a company valued at $22 Bn
Kronos Incorporated and Ultimate Software have entered a definitive merger agreement in order to form one of the world’s largest cloud companies. Over the next three years, the merged company plans to add about 3,000 employees.
As Kronos Inc. and Ultimate Software come together to create a $22 Bn company, the merger of these two industry leaders will result in the creation of one giant organization that specializes in human capital management (HCM) and workforce management across various industries. This company will help leaders across different sectors to manage their employees in an increasingly effective and productive manner by leveraging an unparalleled combination of cloud solutions.
The combined company will become an employer for more than 12,000 people across the globe with the goal of adding about 3,000 more employees over the next three years. The company will have an enterprise value of $22 Bn and revenues of $3 Bn.
This merged company would have a larger scale and a stronger foothold in the fast-paced and ever-evolving HCM marketplace.
Aron Ain, CEO, Kronos, will become the CEO and Chairman of the combined company and will be leading a top-level executive team which would consist of leaders from both Kronos and Ultimate. The combined company will be jointly headquartered in Lowell, Massachusetts, and Weston, Florida.
“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,” said Aron Ain, CEO, Kronos. “Our top priority as we complete this merger is to ensure a smooth transition for our people and continue to exceed our customers’ expectations.”
Aron Ain also added that together the company plans to create “the industry's most comprehensive human capital management and workforce management solution for organizations around the world.”
Ultimate’s UltiPro is designed to deliver HR, payroll, talent, and time and labor solutions, has about 6,000 employees and is currently headquartered in Weston, Florida. As Ultimate is known as a leader in cloud-based human capital management and employee experience solutions, Kronos is also a renowned name in the industry as a provider of workforce management and HCM solutions--having lent services to healthcare providers, government agencies, educational institutions, etc.
“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,” said Adam Rogers, Chief Executive Officer, Ultimate. “
Both Kronos and Ultimate have made their own mark in the HCM industry by delivering innovative solutions to create engaged workforces and help HR and business leaders to drive better business results in their respective companies.
The boards of directors of both the companies have unanimously approved the “all-stock” merger and the deal is expected to be completed by the end of March.
As two industry behemoths join their forces together, the landscape of cloud based solutions is likely to see innovative solutions to the challenges of people management, employee engagement, business-driven employee solutions, and effective workforce management strategies that are facing the world of people and work. It remains to be seen whether such big name mergers in the HR technology space pave the way forward for companies to leverage each other’s expertise and gear up for the changes in the landscape of the future of work.