Merger creates new $22B workforce management tech provider

Two cloud-based workforce management solutions companies with significant retail practices are combining. 

Kronos Inc. and Ultimate Software have entered into a definitive merger agreement. The new company will bring together Ultimate’s UltiPro human capital management (HCM) and Employee Experience products with Workforce Dimensions from Kronos, Kronos Workforce Ready, and other solutions from Kronos.

Upon closing, the combined company will have revenues of approximately $3 billion, more than 12,000 employees worldwide, and an enterprise value of $22 billion, with further plans for growth including the addition of 3,000 employees over the next three years.

Aron Ain, Kronos CEO, will be the CEO and chairman of the combined company, leading an executive team comprised of leaders from both Ultimate and Kronos.
The new company will be jointly headquartered in Lowell, Mass. and Weston, Fla., with dozens of offices around the world.

Hellman & Friedman LLC (H&F), the controlling shareholder of both Kronos and Ultimate, will be the controlling shareholder of the newly-formed company. 

“I have never been more excited in my 40 years at Kronos! Combining our passionate and extremely talented Kronos and Ultimate teams will create a company that is truly people-inspired,” said Ain. “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 organizations around the world. Our top priority as we complete this merger is to ensure a smooth transition for our people and continue to exceed our customers’ expectations.”

“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,” said Adam Rogers, CEO, Ultimate. “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.”

The all-stock merger has been unanimously approved by the boards of directors of both companies and is expected to close at the end of March 2020.