Ultimate Software

Ultimate Software Group develops the software for accounting of the salary payments and other questions connected with personnel management. A flagship product of the company is UltiPro. It is used for providing additional functionality at all stages of employment: beginning from employment before retirement. UltiPro allows to conduct search of specialists, an induction, HR-management, management of special offers for employees, wage sheets, preparation of reports, a time recording and attendance, etc.

History

2020: Merge to Kronos

On February 20, 2020 Kronos and Ultimate Software Group which are among market leaders of the software for personnel management (HR) announced merge. As a result of the transaction which is going to be closed until the end of March the company worth about $22 billion will be created (taking into account debts).

The united company will be headed by the CEO of Kronos Aron Ayn. Its top management will include heads of both companies. Annual revenues of the new company, as expected, will be about $3 billion, and number of staff will be measured by 12 thousand people.

Market leaders of HR software of Ultimate Software and Cronos integrate in the company worth $22 billion

At the time of the official announcement it was not announced that, will happen to the products Kronos and Ultimate. In the press release it is only specified that the new producer will collect "best" of solutions of each company.

If to compare Kronos and Ultimate in a race which began five years ago Kronos obviously won — the analyst of Constellation Research Holger Müller (Holger Mueller) says, commenting on a company merger. — Kronos Workforce Dimensions is a masterpiece of product development. Ultimate, on the other hand, achieved good results, but they averages by the standards of progress of the industry.

The analyst of Nucleus Research Trevor Whyte, in turn, considers that the software of UltiPro from Ultimate Software, but not the solutions Kronos will be the focus of attention after the conclusion of the transaction.

This merge — a game for the customer base of Kronos. In fact, clients of Kronos say that when time to be updated comes, they should use Ultimate. From the point of view of the end user, Kronos is dead or in better case UltiPro Light as there are no bases for any investments into a product is going to become — the expert believes.

Kronos and Ultimate has the general shareholder — private investment fund Hellman & Friedman. In his hands there will be a controlling stake of the new company.^[1]

2019: The group of investors purchased Ultimate Software for $11 billion

On February 4, 2018 it was announced sale of Ultimate Software Group to group of investors led by the Hellman & Friedman company which is engaged in the direct investment.

The cost of the transaction is about $11 billion or $331.5 counting on one stock Ultimate Software that is 19% more than a quotation rate by the time of closing of the exchange on February 1, 2019. After the declaration of the transaction of a stock of developer of HCM systems  jumped by 16%.

The territory near Ultimate Software headquarters

Buyers of the company among whom — Blackstone Group, GIC, Canada Pension Plan Investment Board (CPPIB) and JMI Equity, will pay the transaction from own means.

It is going execute all formalities concerning Ultimate Software sale to the middle of 2019. However Board of Directors and consultants received the 50-day period during which they can consider alternative offers on purchase of the company.

If Ultimate Software nevertheless is sold to the specified consortium of investors, then the company will become private, but will continue independent operation under the leadership of the CEO Scott Scherr. All list of upper managers will remain.

The Goldman Sachs bank is selected by the financial advisor of Ultimate Software, and advises investors buyers on Qatalyst Partners finance.^[2]

Notes