Ultimate Software (Nasdaq:ULTI), a leading provider of human
capital management (HCM) solutions, announced today that it has
entered into a binding Letter of Intent (LOI) with the controlling
shareholders of PeopleDoc with respect to the acquisition of
PeopleDoc by Ultimate Software. PeopleDoc — a pioneer in HR Service
Delivery — is based in Paris, France, and has more than 1,000
customers with users in 180 countries. The addition of the
PeopleDoc HR Service Delivery platform will further Ultimate’s
mission to improve the employee experience by offering new,
person-centric features, such as an online employee help center, HR
case management, and employee file management.
Upon completion of the transaction, PeopleDoc will continue
operating globally as a wholly owned subsidiary of Ultimate,
delivering, selling, and supporting cloud-based HR Service Delivery
solutions that integrate with multiple HCM platforms to
organizations based in North America and Europe. In addition,
beginning in January 2019, Ultimate customers will have the option
to select HR Service Delivery features as part of the unified
UltiPro HCM suite, which includes core HR, payroll, benefits
management, workforce management, talent acquisition, and talent
management.
When used in conjunction with the UltiPro HCM platform, the new
HR Service Delivery options will give Ultimate customers the
ability to provide faster, more responsive support to their
workforces — as well as reduce the administrative burden on HR and
payroll teams. For instance, these new features will allow
customers to immediately process online employee help requests,
serve up personalized answers and guidance to employees
automatically in real-time, and route and track the status of
employee inquiries, all without requiring employees to understand
the structure of the HR organization.
“PeopleDoc’s multi-national team has a proven track record of
success and expertise serving global organizations,” said Scott
Scherr, CEO, president, and founder of Ultimate. “This acquisition
will open doors for Ultimate to further expand our presence in
international markets. We are looking forward to taking care of
PeopleDoc’s employees, as our two amazing cultures create an even
stronger organization.”
“As a startup, we’ve had to evolve time and time again to stay
ahead of the market,” said Jonathan Benhamou, co-founder and CEO of
PeopleDoc. “Now we are entering a new chapter in our journey to
help HR teams worldwide change the world of work. By joining
Ultimate, we are creating an amazing combined team, driven by the
same core values and same 100% dedication to HR. Our shared passion
and the opportunity before us make this next chapter our most
exciting one yet.”
PeopleDoc Background
PeopleDoc has more than 265 employees, with offices in France,
Germany, the U.K., Finland, the Netherlands, Canada, and the United
States. PeopleDoc serves more than 1,000 customers representing
over four million end users, including companies such as Avis
Budget Group, Club Med, GoDaddy, HSBC, Nestle, and Yves Rocher.
The company was founded in 2007 by Jonathan Benhamou and Clément
Buyse with the mission of making it easier for HR teams to elevate
the level of service they provide to their employees. PeopleDoc’s
comprehensive HR Service Delivery platform enables HR organizations
to serve employees anytime, anywhere, with the ability to easily
answer employee requests on demand; automate employee processes;
and manage document acknowledgement, storage, and compliance across
multiple global locations. With less time spent managing
time-consuming administrative tasks, HR can focus more time on
connecting with the workforce to improve the employee experience
and increase engagement at work.
PeopleDoc has recently been mentioned by Forbes for advances in
employee process automation and Inc. Magazine for helping define
the category of HR Service Delivery. In 2014, PeopleDoc was named
to the “Cool Vendors in Human Capital Management” list by Gartner.
More information is available at www.people-doc.com.
"We always worked with our employees and customers to develop
our products and build our business,” said Clément Buyse,
co-founder and COO of PeopleDoc. “It’s exciting that our innovation
can now be fostered by a community of over 4,000 customers and tens
of millions of users. With Ultimate, we will be able to accelerate
research and development for HR Service Delivery, including in our
Paris innovation hub, to help customers bring to life the
workplaces they imagine.”
“It’s rare to encounter another organization that is such a
complementary fit in philosophy, culture, and technology,” said
Adam Rogers, chief technology officer at Ultimate. “As soon as we
met Jonathan and Clément, and the incredible team they’ve built, we
were struck by the alignment between our two brands, our offerings,
and our missions to improve people’s experiences at work. The
unique technology solutions they’ve developed will allow our
customers to take better care of their employees, which we believe
is the single most important ingredient in long-term business
success.”
Transaction Details
Ultimate Software plans to acquire PeopleDoc for approximately
$300 million, to be paid with a combination of cash and shares of
Ultimate Software common stock, with approximately $75 million of
cash to be paid at the closing and approximately $50 million of
cash to be paid 12 months after the closing date. Ultimate Software
expects that the PeopleDoc acquisition will have no material impact
on Ultimate’s total revenues in fiscal year 2018.
Following completion of the notification and consultation
process with PeopleDoc’s employee-works councils, as required by
local laws, Ultimate Software, PeopleDoc, and PeopleDoc’s
shareholders are expected to enter into the definitive share
purchase agreement contemplated by the LOI. Completion of the
transaction is subject to entry into the definitive acquisition
agreement and other customary closing conditions. Ultimate Software
expects the transaction to close in the third quarter of 2018.
Forward-Looking Statements
Certain statements in this press release are forward-looking
statements within the meaning provided under the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are
made only as of the date hereof. These statements involve known and
unknown risks and uncertainties that may cause Ultimate Software’s
actual results to differ materially from those stated or implied by
such forward-looking statements, including risks and uncertainties
associated with the success, integration, and anticipated benefits
associated with the acquisition of PeopleDoc, fluctuations in
Ultimate Software’s quarterly operating results, concentration of
Ultimate Software’s product offerings, development risks involved
with new products and technologies, competition, contract renewals
with business partners, compliance by Ultimate Software's customers
with the terms of their contracts with Ultimate, and other factors
disclosed in Ultimate Software’s filings with the U.S. Securities
and Exchange Commission. Ultimate Software undertakes no obligation
to publicly update or revise any forward-looking statements,
whether as a result of new information, future events, or
otherwise.
About Ultimate Software
Ultimate is a leading provider of cloud-based human capital
management solutions, with more than 38 million people records in
the Ultimate cloud. Ultimate’s award-winning UltiPro delivers HR,
payroll, talent, and time and labor management solutions that
connect people with the information they need to work more
effectively. Founded in 1990, Ultimate is headquartered in Weston,
Florida, and employs more than 4,300 professionals. In 2018,
Ultimate ranked #3 on Fortune’s 100 Best Companies to Work For
list, its seventh consecutive year in the top 25, and #1 on
Fortune’s Best Workplaces in Technology list for the third year in
a row. Ultimate has more than 4,100 customers with employees in 160
countries, including Bloomin’ Brands, Culligan International,
Feeding America, Phoenix Suns, Red Roof Inn, SUBWAY, Texas
Roadhouse, and Yamaha Corporation of America. More information on
Ultimate’s products and services for people management can be found
at www.ultimatesoftware.com.
UltiPro is a registered trademark of The Ultimate Software
Group, Inc. All other trademarks referenced are the property of
their respective owners.
Follow Ultimate Software on Twitter:
www.twitter.com/UltimateHCM and on LinkedIn:
http://linkd.in/UltimateHCM
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version on businesswire.com: https://www.businesswire.com/news/home/20180717005542/en/
Ultimate Software, WestonPublic Relations Contact: Darlene
Marcroft, 954-331-7444darlene_marcroft@ultimatesoftware.comorFor
Sales Information:Ultimate Software, 800-432-1729Website:
www.ultimatesoftware.com
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