Ultimate Software

Ultimate Software was an American enterprise software company focused on human capital management, including human resources administration, payroll, workforce management, recruiting, talent management, and related employee-data services. Founded in 1990 by Scott Scherr and headquartered in Weston, Florida, the company initially developed software for on-premise HR and payroll administration. Its first product release, in 1993, established the foundation for the UltiPro product family. The company's principal offering became UltiPro, a unified HCM platform intended to serve as an organization's central system of record for employee and workforce information. Over time, the platform expanded beyond core HR and payroll into time and attendance, onboarding, recruiting, performance management, compensation, succession planning, talent administration, and analytics. Ultimate's cloud strategy became particularly important after UltiPro was reintroduced as a cloud-based service in 2002. This model reduced the need for customers to operate the software on their own infrastructure and allowed Ultimate to deliver recurring, centrally managed services across a broad customer base. Ultimate Software entered the public markets in June 1998 through a Nasdaq listing under the ticker ULTI. The company later expanded its presence beyond the United States, with offices and operations referenced in Canada, the United Kingdom, and Singapore. By 2017, published company information described a business with more than 5,000 employees and approximately 4,100 customers in 160 countries. The same period also saw reported fourth-quarter revenue exceed $940.7 million; this figure is historical and should not be treated as current revenue. A major ownership change occurred in 2019. Hellman & Friedman Capital Partners announced an agreement to purchase Ultimate Software Group for approximately $11 billion on February 4, 2019, and the transaction closed on May 3 of that year. The acquisition took Ultimate private. In February 2020, Ultimate Software and Kronos Incorporated announced plans to combine their businesses into a cloud-focused company serving the human resources and workforce-management markets. The transaction was completed on April 1, 2020, creating Ultimate Kronos Group, commonly known as UKG. Ultimate Software therefore no longer operates as an independent company under its former corporate structure. Its technological and product heritage continues through UKG, while the Ultimate Software name is primarily associated with the development of UltiPro and with the consolidation of cloud HCM and workforce-management software. The brand's historical importance lies in helping move core HR and payroll software from installed systems toward integrated cloud delivery, while combining employee administration with broader talent and workforce capabilities.

Ultimate Software was established in 1990 by Scott Scherr in the United States. Its initial business centered on human resources and payroll software for organizations that operated applications on their own premises. In 1993, the company released the first version of its software, which was marketed as an HR management and payroll system. This early product provided core employee administration and payroll functions and formed the basis of the later UltiPro product family. Ultimate became a publicly traded company in June 1998, listing on Nasdaq under the symbol ULTI. Public ownership gave the company access to capital for product development and expansion as enterprise customers increasingly sought more integrated HR systems. A significant change in its product model came in 2002, when UltiPro was reintroduced as a cloud-based offering. Rather than requiring each customer to maintain a separate installed environment, the cloud model enabled Ultimate to operate the application as a hosted service and provide a common platform for HR data, payroll, and related processes. The cloud transition broadened the scope of UltiPro. The platform developed into a unified human capital management system covering core HR, payroll, time and attendance, recruiting, employee onboarding, performance management, compensation, succession management, and workforce analytics. Its value proposition was the consolidation of these functions into one employee-data environment rather than a collection of disconnected departmental applications. Company and industry descriptions from the period indicate that the platform supported millions of employee records and thousands of organizations. Ultimate also expanded internationally. Its operating footprint included the United States, Canada, the United Kingdom, and Singapore, and company information described service to customers in numerous countries. By 2017, the company was reported to have more than 5,000 employees and approximately 4,100 customers across 160 countries. Historical reporting for the fourth quarter of 2017 placed total revenue above $940.7 million. These figures describe the independent public company before its subsequent acquisition and merger. On February 4, 2019, Hellman & Friedman Capital Partners announced an agreement to purchase Ultimate Software Group for approximately $11 billion. The acquisition closed on May 3, 2019, and ended Ultimate's status as a public company. The transaction reflected the strategic value of established cloud HCM platforms at a time when businesses were moving payroll, employee records, and talent processes toward subscription-based software. In February 2020, Ultimate Software and Kronos Incorporated announced that they would combine their businesses. Kronos was known for workforce-management software, while Ultimate brought a broad cloud HCM platform and employee-data capabilities. Their combination was intended to create a larger cloud software provider spanning human resources, payroll, workforce management, and related employee services. The merger was completed on April 1, 2020, and the resulting business was named Ultimate Kronos Group, or UKG. The completion of the merger marked the end of Ultimate Software as an independent operating company and brand owner. Its principal product heritage, especially UltiPro, became part of UKG's broader portfolio. Ultimate Software's historical contribution was its development of a cloud-centered HCM model that linked core HR and payroll with talent, workforce, and analytics functions in a unified enterprise platform.

1. 2020Merged with Kronos

   Ultimate Software and Kronos completed their combination on April 1, creating Ultimate Kronos Group.

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2. 2019Acquired by Hellman & Friedman

   Hellman & Friedman completed its approximately $11 billion acquisition of Ultimate Software Group, taking the company private.

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3. 2002UltiPro moves to cloud delivery

   UltiPro was reintroduced as a cloud-based HCM model, supporting unified management of HR and payroll information.

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4. 1998Initial public listing

   Ultimate Software became publicly traded on Nasdaq under the ticker ULTI.

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5. 1993First software release

   Ultimate released its first HR management and payroll software, initially supplied as an on-premise system.

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6. 1990Company founded

   Scott Scherr founded Ultimate Software in the United States to develop human resources and payroll software.

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Integrated cloud human capital management for organizations seeking a unified system for HR, payroll, workforce, and talent data.

• UltiProCloud human capital management platform1993

  UltiPro was Ultimate Software's principal HCM platform. It began as an HR management and payroll product and was later delivered through a cloud model. The platform brought together employee records, payroll, time and attendance, recruiting, onboarding, performance management, compensation, succession planning, talent administration, and analytics. Its central proposition was a shared system of record that connected administrative HR processes with workforce and talent functions. Following the 2020 merger, the product's technology and customer base became part of UKG.

• 2020Combine with KronosM&A

  Ultimate Software and Kronos each operated in adjacent areas of cloud HR and workforce software, creating an opportunity to combine HCM and workforce-management capabilities.

  What changed. The companies completed their merger on April 1, 2020, forming Ultimate Kronos Group.

  Aftermath. Ultimate Software ceased to operate as an independent company, while its products and capabilities continued within UKG.

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• 2019Accept the Hellman & Friedman acquisitionM&A

  Ultimate Software was a publicly traded cloud HCM provider with a large customer base and an established enterprise software platform.

  What changed. The company was acquired by Hellman & Friedman Capital Partners in a transaction announced at approximately $11 billion and completed on May 3, 2019.

  Aftermath. Ultimate Software became privately held and subsequently pursued a combination with Kronos.

  Announced acquisition value. $11 billion (2019 transaction announcement)

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• 2002Adopt a cloud-based HCM delivery modelStrategy

  Ultimate's original HR and payroll software was supplied for on-premise operation, while enterprise software buyers were increasingly interested in centrally hosted services.

  What changed. The company reintroduced UltiPro as a cloud-based platform for unified HR and payroll management.

  Aftermath. The cloud model became the foundation for expanding UltiPro into a broader HCM platform and for serving customers across multiple international markets.

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• 2020Ultimate Software and Kronos announce combination

  Ultimate Software announced plans to merge with Kronos Incorporated in a transaction designed to create a cloud-computing company focused on human resources and workforce software.

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• 2020Ultimate Kronos Group is formed

  The merger between Ultimate Software and Kronos was completed on April 1, 2020, creating Ultimate Kronos Group, generally known as UKG.

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• 2019Ultimate Software agrees to $11 billion take-private acquisition

  Hellman & Friedman Capital Partners announced an agreement to acquire Ultimate Software Group for approximately $11 billion. The transaction closed on May 3, 2019, taking the company private.

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1. Ultimate Software