INSUBCONTINENT EXCLUSIVE:
Public company Ultimate Software is acquiring French startup PeopleDoc for $300 million in cash and stock
The transaction is expected to close in the third quarter of 2018
These two companies both make HR solutions.Ultimate Software has been around for a while
It went public in 1998 and switched to a software-as-a-service solution in 2002 — this solution is called UltiPro
It lets you manage all things HR, from payroll to benefits, time management, onboarding, performance management and more.PeopleDoc is a
younger French startup that has raised over $50 million
As the name suggests, PeopleDoc lets you centralized all HR documents related to you in a single location
They can come from multiple sources and systems, they&ll all be there.The startup has also worked on an onboarding solution and other tools
to automate HR processes as much as possible
For instance, you can use PeopleDoc to communicate with the HR team and notify them of a change.Ultimate Software has around 4,100
customers, which represent around 38 million employees
So it clear that the company is going after big clients
Each customer employs 9,200 people on average.PeopleDoc has a thousand customers and serves 4 million employees
While PeopleDoc is significantly smaller than Ultimate Software, it a notable acquisition for the startup.Ultimate Software says that it
plans to spend $75 million in cash when the acquisition closes
PeopleDoc shareholders will receive another $50 million a year later.Finally, Ultimate Software is spending around $175 million in stock for
the rest of the acquisition
The company has been doing incredibly well on the stock market, consistently going up over the past ten years.There are two reasons behind
First, Ultimate Software has been mostly focused on American customers
With today acquisition, Ultimate Software will be able to convince new international customers, particularly in Europe.Second, PeopleDoc
will continue to operate as a subsidiary as these two companies don&t exactly do the same thing
In fact, Ultimate Software will start distributing PeopleDoc services to its own customers next year.
