HR software providers Kronos and Ultimate Software will be merged to form one of the world’s largest human capital management and workforce management cloud-based software companies.
They said the deal would bring together the best elements of each company’s HR systems, including Ultimate’s UltiPro HCM and Employee Experience and Kronos’ Workforce Dimensions and Workforce Ready.
The merger will create a $3 billion (£2.3bn) company with a workforce of more than 12,000 people worldwide. A further 3,000 employees are expected to be recruited as part of its growth plans over the next three years.
The newly-formed organisation is likely to be renamed, with its new identity revealed at a later date.
Kronos CEO Aron Ain, who will become the CEO and chairman of the combined firm, said: “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 organisations around the world. With a combined 70 years in business, we are poised for tremendous success.”
Adam Rogers, CEO at Ultimate, added: “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. 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.”
Kronos estimated that around 40 million employees use Kronos systems every day, while Ultimate claimed it has more than 6,600 customers worldwide including household names such as Subway and The Yamaha Corporation of America.