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?
Thinking about choosing a new software vendor but don't know where to start? Narrow down your shortlist by focusing on software that has received an Info-Tech Research Group award. New data from SoftwareReviews shows that organizations reported higher satisfaction when they switched to software that had received an Info-Tech award.
The impact of COVID-19, as it became a global pandemic in Q1 of 2020, has affected user sentiment toward software during a growing period of fear, uncertainty, and doubt. To analyze the impact, SoftwareReviews compared Satisfaction (willingness to recommend to a peer), ability to deliver Business Value (fair cost to value), and Likeliness to Renew prior to March 10 and post March 10.
What is changing in the HR technology space as a result of COVID-19? Some organizations are seeing an uptick in interest and customer support, while others are providing free access to their product.
An enterprise application selection or implementation has most likely been heavily impacted by COVID-19. Do not hit the brakes; stopping and restarting projects increases the risk of failure. Slow down or speed up? Which is the right strategy for your organization?
Business continuity during COVID-19 will mean leveraging online technologies for all departments, including human resources. IT departments can assist in recruiting efforts by ensuring virtual interviewing technologies are in place and supported.
Culture Amp has enabled a new feature to increase employee confidentiality. With this launch, administrators can no longer identify participants indirectly.
Cornerstone is acquiring Saba, a learning management system, to further invest in its learning offerings and gain reach in the market. With this acquisition, the organization intends to accelerate product development.
Cornerstone acquires Clustree to incorporate AI into its learning solutions. As a result, Cornerstone’s Learning Suite displays deep knowledge of employee skills, which can inform promotions or job changes, areas for learning, and recruiting decisions.
Hellman & Friedman LLC (H&F), the controlling shareholder of both Kronos Incorporated and Ultimate Software, will merge the two entities to create one of the world’s largest HCM cloud companies.