Comprehensive software reviews to make better IT decisions
Merger of Kronos and Ultimate Software – A Strategic Joining of Forces
Hellman & Friedman LLC (H&F), the controlling shareholder of both Kronos Incorporated and Ultimate Software, will merge the two entities, creating a human capital management (HCM) powerhouse valued at $22 billion. The merger will create one of the world’s largest HCM cloud companies by combining the strength of the two organizations – Ultimate’s UltiPro HCM and Employee Experience products with Kronos’ Workforce Dimensions and Workforce Ready.
Both Kronos and Ultimate have strong, growing portfolios. Kronos reported revenue of $1.4 billion for fiscal 2019, and Ultimate reported $1.14 billion for fiscal 2018. In a 2019 statement regarding Ultimate’s acquisition by H&F, Ultimate’s CEO Adam Rogers discussed the purchase as a win-win, with Ultimate looking for a cash injection and H&F looking for well-run, growing businesses to add to their portfolio.
Kronos has been very active in disrupting the HCM marketplace. In 2014, CEO Aron Ain recognized that to keep Kronos relevant and competitive, the company needed a vision to “produce a product that would put Kronos out of business.” The resulting project (code-named Falcon) took a fresh approach to the HCM market and created Workforce Dimensions, a revolutionary cloud-based HCM solution powered on the D5 platform.
Source: Human Capital Management at SoftwareReviews, Report Published January 2020
Ultimate’s and Kronos’ innovative product offerings are advancing HCM technology, enabling organizations to use human capital management solutions not just as an administrative function but as a driver of value within the organization.
The two companies are well aligned through not only product portfolio but also corporate culture. This approach is refreshing and very indicative that the organizations are not just talking the talk but truly believe in building innovative solutions to help organizations around the world drive better business outcomes, achieve a competitive advantage, and create engaged workforces.
Alone, both organizations are successes in the HCM marketplace. Combined, they have the potential to rival the world’s largest HCM solution providers.
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.
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. The merger was approved by both boards and is expected to be completed by the end of March.
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.