On February 20th Kronos Incorporated and Ultimate Software announced their agreement to merge in an all-stock deal. The companies’ boards have approved the deal, which is expected to close in late March. This union will create one of the world’s largest cloud software entities, one that company representatives are valuing at $22 billion. Aron Ain, long-time Kronos CEO who has overseen Kronos’ journey from Time and Attendance systems purveyor to well-rounded WFM market leader with innovative HCM capabilities, will be at the helm. Ultimate’s UltiPro HCM and Employee Experience products and Kronos’ Workforce Dimensions and Workforce Ready solutions will for some time be the focus of integration and continuing go-to-market efforts.
This deal will disrupt the HCM software marketplace, both customers (current and future) and vendors, and many in the latter contingent were scrambling to find out more within minutes of the announcement so they might form countering strategies. This includes HCM suite or platform vendors focused mostly on the mid-market or SMB segments, major HCM players in the larger, enterprise segment, industry titans increasingly participating in HCM as well as HCM-related best-of-breed players. Many will likely feel at least some ripple effects.
Watch this video take for more details and analysis.
