Comprehensive software reviews to make better IT decisions
Kronos and Ultimate Software Merge Under Private Equity Firm Hellman & Friedman
On February 21, Kronos Incorporated and Ultimate Software announced the merger of the two entities. Both entities’ controlling stockholder is the private equity firm Hellman & Friedman (H&F). The merger was approved by both boards and is expected to be completed by the end of March.
Kronos may start to jettison its legacy HCM technology and leverage Ultimate’s cloud-based SaaS solution. There are likely synergies to be realized in bringing Kronos’ best-in-class employee time-tracking technology to bear within the Ultimate Software stack as well. It is projected that an additional 3,000 jobs will be created as result of the newly merged companies.A common strategy for private equity firms is to take an underperforming company and optimize the operating performance such that the company can be brought public via an IPO stock offering. Thus, combining the two companies within a private equity firm’s portfolio will increase market share, reduce the internal fighting and competition, and reduce the waste and expenses of each organization by combining their synergies while making the combined balance sheet more attractive to investors and Wall Street.
From a customer perspective of either company, nothing is going to change in the immediate future as the new entity prepares to move into executing its post-merger strategy. This will most likely result in combining the market share of the two companies, which are currently competing against each other in the same portfolio, and take the best-in-show offerings from each company to the newly merged company. This combination will also take the quarterly measuring stick off the table and allow the company to operate unencumbered. However, we are bullish on the notion that 3,000 new employees will be required to support the new entity.
It will be interesting to observe the effect of the merger on the pressure to reduce expenses and subsequently on any degradation of services. If you are a current customer of either Kronos or Ultimate Software, ensure you have an effective scorecard and periodic business review meetings to monitor service levels and their performance in preparation for your renewal.
Want to Know More?
On May 24-25, Informatica held its annual conference in Las Vegas – the first time “in-person” since the beginning of the COVID-19 pandemic.
Custom application development is a strategic differentiator in the digital economy. Organizations need to make good decisions on how to insource or outsource that development or they risk bad software … and worse results.
This note highlights the top three trends to watch for in the 2022 UCaaS marketspace: AR/VR digital workspaces will see sustained investment; UCaaS and customer experience management technologies will continue to blend; and speech functionality will become more sophisticated through AI-driven technology.
Enterprise Connect is North America’s premier conference for advances in communications, collaboration, and customer experience technologies. In this note, Thomas Randall provides his trends and keynote highlights for Enterprise Connect 2021, held September 27 to 29.
On October 6, 2021, Front briefed Info-Tech on their latest product functionality and roadmap, alongside their growth in the EMEA region. Front – a unified customer experience platform provider – offers a centralized communications hub that enables the fluid interchange of information for both internal and external communications.
On October 8, 2021, BlueJeans by Verizon announced their “Next-Generation BlueJeans” suite and partnership with Google Glass. The Next-Generation suite ties BlueJeans Meetings to two new products: BlueJeans Spaces and BlueJeans Collab Board.
Vijay Sundaram, Chief Strategy Officer at Zoho, describes a major release of new apps and services focused on enabling hybrid work.
Automation is not a silver bullet solution to your workforce productivity challenges. Optimization and automation (optimation) must be used together to remove root cause inefficiencies and best use the features and capabilities of your automation solutions.
At its fifth annual Zoomtopia conference, Zoom announced a wide range of innovations and upcoming products, including feature improvements for Zoom’s core videoconferencing platform; expansions for Zoom Phone and Zoom Events; and the introduction of Zoom’s Video Engagement Center.