Kronos Incorporated and Ultimate Software, two major vendors of Human Capital Management (HCM) software, have entered into a definitive merger agreement, the companies announced. Combined, the cloud companies will have revenues of approximately $3 billion and an enterprise value of $22 billion.
Kronos CEO Aron Ain will serve as CEO and chairman of the combined company, while the executive team will include leaders from both Ultimate and Kronos. The combined company will have more than 12,000 employees worldwide, with plans to add another 3,000 employees over the next three years.
The merger should offer the ability to scale business in a fast-growing market against other major vendors like SAP, Workday, and Oracle. Innovations like AI and machine learning, personalization and predictive analytics are reshaping workforce management.
"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," Ultimate CEO Adam Rogers said in a statement. "This merger will enable our more than 12,000 inspired people around the world to deliver innovation in human capital management faster than ever before. 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."
Hellman & Friedman LLC (H&F), the controlling shareholder of both Kronos and Ultimate, will be the controlling shareholder of the newly formed company.