Mark Smith's Analyst Perspectives

ADP Acquires Workscape to Consolidate Talent Management Market

Posted by Mark Smith on Nov 28, 2010 3:00:02 PM

Consolidation activity increased in the market for applications in talent management or what I call workforce performance management as ADP announced and now has closed the acquisition of Workscape. ADP is a $9 billion outsourcing provider that is well known for providing employer and payroll services; the company has been expanding its breadth of services for employers by responding to demand for software as a service (SaaS), a deployment model that does not require significant involvement from the customer’s IT staff.

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Topics: Performance Management, Kenexa, Business Performance Management (BPM), Compensation Management, Financial Performance Management (FPM), Talent Management, Workforce Performance Management (WPM)

Kenexa Advances in Talent Management and Saves Salary.com

Posted by Mark Smith on Nov 28, 2010 2:58:59 PM

Today was another inflection point for the talent management market and buyers of HR applications with the announcement that Kenexa is acquiring salary.com (NASDAQ: SLRY) pending shareholder and SEC approval. Kenexa is offering a cash-per-share agreement that should work to complete the transaction. More complicated will be figuring out how to retain the talent at salary.com; that company has been decreasing in sales and size of the organization over the last couple of years and has struggled to reduce operating expenses. Its recent quarterly SEC filing showed a loss of more than $5.5 million on $9.7 million of revenue. It’s obvious that salary.com needed to find a buyer fast or face closing its doors. In contrast, according to its most recent quarterly SEC filing, Kenexa generated a $1.1 million profit on $44.8 million of revenue.

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Topics: Performance Management, Kenexa, Business Performance Management (BPM), Compensation Management, Financial Performance Management (FPM), Talent Management, Workforce Performance Management (WPM)