Ventana Research Analyst Perspectives

Kronos and Ultimate Software Announce Merger

Posted by Steve Goldberg on Feb 27, 2020 2:52:45 PM

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 my video take for more details and my analysis.

Regards,
Steve Goldberg

AP Kronos Ultimate Merger Goldberg_1

 

Topics: Human Capital Management, Learning Management, Workforce Management, candidate engagement, Continuous Payroll, total rewards management

Steve Goldberg

Written by Steve Goldberg

Steve is responsible for the Human Capital Management (HCM) research and advisory services practice. He guides HR and business leaders in leveraging their workforce for competitive advantage. He guides HCM technology vendors on the market of buyers and where their applications and technology can have maximum impact. Steve's uniquely diverse HCM experience spans over 30 years, including HR process and HCM systems practitioner leadership roles, heading up product strategy for one of the most respected HCM application vendors, and operating his own global advisory practice. His expertise areas of coverage include HRMS, Talent Management and Workforce Management, with specialized focus on recruiting, learning, performance, compensation and payroll. Prior to joining Ventana Research, Steve worked as a corporate VP in HR at UBS/Swiss Bank Corporation and Huizenga Holdings, product strategy leader at PeopleSoft and Unicru, and was also VP and Research Director at Bersin & Associates. Over 35,000 HR professionals and business executives have been informed by one of Steve's presentations on HCM, or have read his published work. Steve holds an MBA in Human Resource Management from University of Buffalo School of Management and a BBA in Industrial Psychology from The City University of New York.