On February 24th Cornerstone OnDemand announced their plan to acquire rival Saba Software for approximately $1.4 billion in cash and stock. Each of the enterprise software companies went to market about twenty years ago with learning management solutions and over time broadened their product portfolios with other talent management offerings including performance management and talent acquisition. The combined company will serve more than 75 million users in about 7,000 organizations around the world and projects annual cloud subscription revenue of roughly $800 million.
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.
Organizations universally desire the business outcome of improved organizational agility — in other words, the ability to quickly and effectively identify and respond to business risks and opportunities, typically through workforce-related actions. Being agile requires that an organization be adept at two things: harnessing cognitive assets, the knowledge and ideas that comprise the intellectual capital of a workforce, and deploying and using technologies that channel those assets where they will have the greatest impact.