Who Owns UKG Company?

UKG Bundle

Get Full Bundle:

	SWOT	$15	$10
	5 FORCES	$15	$10
	BCG	$15	$10
	CANVAS	$15	$10
	4P's MIX	$15	$10
	PESTLE	$15	$10

TOTAL:

ADD TO CART

Who Really Owns UKG?

Navigating the complexities of the human capital management (HCM) landscape requires understanding the ownership dynamics of its key players. The Ultimate Kronos Group (UKG) stands out as a leader, formed from a monumental merger that reshaped the industry. Unraveling UKG SWOT Analysis is essential for any investor or strategist.

Understanding the UKG ownership structure is critical for anyone looking to understand its strategic direction and market position. From its roots in a massive merger to its current standing, this exploration of UKG company information will illuminate the key stakeholders and their influence. Whether you're curious about UKG's parent company or the details of its headquarters, this analysis provides a comprehensive overview.

The ownership of Ultimate Kronos Group (UKG) is a story of mergers and acquisitions, stemming from the union of Ultimate Software and Kronos Incorporated. Understanding the founders and early ownership of these predecessor companies is key to grasping the current UKG ownership structure. The journey to the formation of UKG involved significant investment firms and strategic decisions that shaped its present-day status.

Ultimate Software, founded by Scott Scherr in 1990, and Kronos Incorporated, established in 1977 by Mark S. Ain, both played crucial roles in the HR and workforce management technology sectors. These companies, with their distinct histories and ownership structures, eventually converged to create UKG. The evolution of ownership reflects strategic shifts and investment decisions that have defined the company's trajectory.

The merger that formed UKG was not a simple combination of two equal entities. It was the culmination of acquisitions and investments that positioned certain stakeholders as key players. The background of both Ultimate Software and Kronos, including their initial public offerings and subsequent acquisitions by investment groups, is essential to understanding the current UKG ownership.

Ultimate Software's Foundation

Ultimate Software was founded in 1990 by Scott Scherr. It went public in June 1998.

Kronos' Origins

Kronos Incorporated was founded in 1977 by Mark S. Ain. It created the first microprocessor-based time clock.

Public to Private: Kronos

Kronos went public in 1992. It was taken private in March 2007 for $1.74 billion.

Ultimate Software Acquisition

In February 2019, Ultimate Software was acquired by an investor group. The deal was valued at approximately $11 billion.

Key Investors

Hellman & Friedman and Blackstone were lead investors in Ultimate Software. JMI Equity also participated.

Formation of UKG

The merger of Ultimate Software and Kronos created UKG. This was influenced by the existing ownership structures.

The UKG ownership structure is largely influenced by the pre-merger acquisitions of Ultimate Software and Kronos. Hellman & Friedman, along with other investment firms, played a significant role in these acquisitions, setting the stage for the formation of UKG. Understanding the roles of these key investors provides insight into the UKG parent company and its strategic direction. For more information about the competitive landscape, you can check out the Competitors Landscape of UKG.

Key Takeaways

The founders of Ultimate Software and Kronos set the stage for the creation of UKG.

• Scott Scherr founded Ultimate Software in 1990.
• Mark S. Ain founded Kronos in 1977.
• Hellman & Friedman was a major investor in both Ultimate Software and Kronos.
• The merger was influenced by prior acquisitions and investments.

UKG SWOT Analysis

• Complete SWOT Breakdown
• Fully Customizable
• Editable in Excel & Word
• Professional Formatting
• Investor-Ready Format

GET TEMPLATE ➔

The evolution of Ultimate Kronos Group (UKG) ownership is fundamentally tied to its formation through the merger of Ultimate Software and Kronos Incorporated in April 2020. This strategic move was primarily driven by private equity firms that held significant stakes in both predecessor companies. This merger, valued at $22 billion, was a pivotal moment, consolidating the ownership under a new entity and setting the stage for its current structure.

The ownership structure of UKG reflects the influence of private equity. Before the merger, Hellman & Friedman had already invested in Kronos, while leading the acquisition of Ultimate Software. This interconnectedness among the major stakeholders set the stage for the eventual combination of the two companies. This setup allowed UKG to operate with substantial cash flow and margins, which is typical for private equity-owned HR tech firms. The strategic decisions made by these key stakeholders have significantly shaped UKG's trajectory in the HR technology sector.

Presently, UKG is a privately held company. Hellman & Friedman is the controlling shareholder, holding roughly 50% ownership. Blackstone Group is the largest minority investor, with a 20-25% stake. Other significant minority investors include GIC, Canada Pension Plan Investment Board (CPPIB), and JMI Equity. UKG's total revenue for fiscal year 2023 was approximately $4.3 billion, and it is targeting $5 billion in revenue by the end of fiscal year 2025. This ownership structure enables UKG to focus on long-term growth strategies, unlike publicly traded companies that may face pressures related to short-term financial performance.

Key Takeaways on UKG Ownership

UKG's ownership is primarily controlled by private equity, which has shaped its strategic direction and financial performance.

• Hellman & Friedman is the controlling shareholder, while Blackstone Group holds a significant minority stake.
• The merger of Ultimate Software and Kronos was a pivotal event, consolidating ownership under a new entity.
• UKG's financial performance, with a target of $5 billion in revenue by 2025, reflects its private equity backing.
• The ownership structure allows UKG to focus on long-term growth strategies.

UKG PESTLE Analysis

• Covers All 6 PESTLE Categories
• No Research Needed – Save Hours of Work
• Built by Experts, Trusted by Consultants
• Instant Download, Ready to Use
• 100% Editable, Fully Customizable

GET TEMPLATE ➔

As a privately held entity, the board of directors at UKG, also known as Ultimate Kronos Group, is structured to reflect the interests of its primary private equity owners. While detailed public information on all board members and their specific equity representation is not available for private companies, it's understood that representatives from major shareholders, such as Hellman & Friedman and Blackstone, hold significant positions. This ownership structure directly influences the strategic direction and operational decisions within the company. For more detailed UKG company information, consider exploring its historical background.

Aron Ain, the former CEO of Kronos and the inaugural CEO and chairperson of the combined UKG until July 1, 2022, currently serves as the Executive Chairperson of the board. In July 2024, Jennifer Morgan was appointed as the new CEO of UKG, succeeding Christopher Todd. Morgan has been on the UKG Board of Directors since 2021. Her experience, including a prior role as co-CEO of SAP and a tenure at Blackstone overseeing portfolio operations, underscores the influence of private equity ownership on leadership appointments. The UKG headquarters are located in Lowell, Massachusetts, and Weston, Florida.

The voting structure at UKG, a privately held company, is typically governed by equity agreements among its owners. Given that Hellman & Friedman is the controlling shareholder with approximately 50% ownership, they likely possess the most significant voting power. Blackstone, as the largest minority investor with a 20-25% stake, also holds substantial voting rights. This concentration of UKG ownership among a few private equity firms means that decisions regarding company strategy, major investments, and leadership are primarily driven by these key stakeholders. There have been no public reports of proxy battles or activist investor campaigns, which are more common in publicly traded companies. Understanding the UKG ownership structure is key to grasping its strategic direction.

Key Takeaways on UKG Ownership

UKG is primarily owned by private equity firms, Hellman & Friedman and Blackstone, influencing board composition and strategic decisions. Jennifer Morgan is the current CEO, appointed in July 2024. The voting power is concentrated among the major shareholders.

• Hellman & Friedman holds the controlling stake.
• Blackstone is a significant minority investor.
• Leadership appointments reflect the influence of private equity.
• No public proxy battles or activist campaigns have been reported.

UKG Business Model Canvas

• Complete 9-Block Business Model Canvas
• Effortlessly Communicate Your Business Strategy
• Investor-Ready BMC Format
• 100% Editable and Customizable
• Clear and Structured Layout

GET TEMPLATE ➔

In the past few years, the Ultimate Kronos Group (UKG) has experienced significant changes, reflecting trends common in private equity-backed technology firms. A notable shift occurred in July 2024, with Jennifer Morgan, formerly of Blackstone, assuming the CEO role. This change highlights the influence of the primary ownership on the company's leadership and strategic direction. Morgan's appointment is designed to drive substantial growth, with a focus on AI and customer success. Understanding the current UKG ownership is crucial for grasping the company's strategic direction and future prospects.

In July 2024, UKG also restructured its operations, which included laying off approximately 2,100 to 2,250 employees, around 14% of its global workforce. This strategic move aimed to redirect investments into key growth areas such as AI platforms and customer support. The company aims to achieve $5 billion in revenue by the end of fiscal year 2025. This restructuring exemplifies how private equity firms manage their investments to enhance financial returns. For more insight, you can explore Revenue Streams & Business Model of UKG.

From an UKG parent company perspective, Hellman & Friedman remains the controlling shareholder, with Blackstone as a key minority investor. These private equity firms are focused on profitability and growth, as indicated by UKG's high cash flow levels and over 30% margins. The company's acquisition strategy, including the purchase of Immedis and Shiftboard, expands its product offerings and market reach. The UKG headquarters location and overall structure are aligned with its private equity backing, enabling long-term strategies without the immediate pressures of public markets.

Recent Leadership Change

Jennifer Morgan was appointed CEO in July 2024, succeeding Christopher Todd. This change reflects the influence of the primary ownership.

Organizational Realignment

Approximately 2,100 to 2,250 positions were eliminated in July 2024, focusing investments on AI and customer support.

Ownership Dynamics

Hellman & Friedman and Blackstone are the primary private equity investors driving profitability and growth.

Acquisition Strategy

UKG continues to acquire companies like Immedis and Shiftboard to expand its product offerings and market reach.

UKG Porter's Five Forces Analysis

• Covers All 5 Competitive Forces in Detail
• Structured for Consultants, Students, and Founders
• 100% Editable in Microsoft Word & Excel
• Instant Digital Download – Use Immediately
• Compatible with Mac & PC – Fully Unlocked

GET TEMPLATE ➔

Related Blogs