The software company that advertises on Miami Heat uniform merging with another firm
Weston-based Ultimate Software, among the largest and most successful tech companies in South Florida, announced Thursday it planned to merge with Massachusetts-based Kronos to form a new cloud computing venture specializing in human resources software.
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, it said in a release. It also plans to hire 3,000 additional employees over the next three years. An Ultimate representative said headcount would not otherwise be affected.
The new company, which does not yet have a name, will be led by Kronos CEO Aron Ain, and will maintain dual headquarters in Weston and Lowell, Mass.
Last year, Ultimate, which traded under the ULTI ticker on the NASDAQ exchange, was taken private by an investor group led by Hellman & Friedman, a San Francisco-based private equity investment firm. As part of the proposed terms outlined Thursday, Hellman & Friedman, which also controls Kronos, will be the newly formed company’s largest shareholder.
Minority stakeholders will include private equity giant Blackstone, Singapore-based fund GIC, the Canada Pension Plan Investment Board, and private equity group JMI Equity.
Ultimate Software was founded in 1990 by Scott Scherr; Scherr retired last year. In 2017, Ultimate signed a deal to become jersey sponsor for the Miami Heat. The deal is set to expire at the end of this year.
This story was originally published February 20, 2020 at 12:23 PM.
