Kronos and Ultimate Software have entered into a definitive merger agreement to form one of the world’s largest cloud providers of workforce management and human capital management (HCM) services.
The deal is expected to close at the end of March creating a combined company with revenues of approximately $3bn, more than 12,000 employees worldwide and an enterprise value of $22bn. Its stated plans for growth include the addition of 3,000 employees over the next three years.
Kronos and Ultimate each have a proven track record of delivering innovative solutions to organisations and the new company will bring Ultimate’s UltiPro HCM and employee experience products under the same umbrella as Workforce Dimensions from Kronos and Kronos Workforce Ready, strengthening its position as a key contender in the fast-growing HCM marketplace.
Aron Ain, long-time Kronos chief executive officer, will be CEO and chairman of the combined company. He explained: “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 organisations around the world. With a combined 70 years in business, we are poised for tremendous success. 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.”
Adam Rogers, chief executive officer at Ultimate, added: “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. 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.”