What You Need to Know
Acquisitions and other developments this past year show Ceridian maturing into a bona fide global provider of technology for human capital management. Leadership has positioned Ceridian to continue delivering disruptive innovation for the future of work and in the company’s core competencies, workforce management and payroll.
Acquisitional Strategy and Expansion of the Global Footprint
Successful vendors of this heft usually have well-thought-out acquisitional strategies. Going back to the timely acquisition, back in April 2012, of Dayforce itself, Ceridian’s approach to mergers and acquisitions has been savvy. The strategy of late appears to be twofold in nature. It’s evident that complementing the service suite from a technological standpoint has been a primary motivating factor. For example, with the acquisition of Ideal, in April 2021, the rationale was clear: bring in expertise rather than develop the ability in-house. Recognizing artificial intelligence as the soon-to-be-indispensable tool for the employee experience, Ceridian acted to acquire a fully baked solution to meet its clients’ needs, whereas building such a solution from existing internal resources would have been possible to do, but not without the tradeoff of time (3Sixty Insights 3SIMA2153 – “Ceridian Displays Future-of-Work Savvy with Acquisition of Artificial Intelligence Startup Ideal,” May 2021).
The second aim of Ceridian’s acquisitional strategy, clearly, has been global expansion. Ceridian realizes global payroll will continue to grow increasingly important to its clients, and its recent acquisition of the Latin America–based ADAM HCM is the latest in a string of wise moves on this front. In March 2021, Ceridian acquired Ascender HCM Pty Limited, a provider from the Asian Pacific Japan (APJ) region, bringing the total customer base to 1,500 clients and 2.5 million employees across 30 countries in the region. With ADAM HCM come customers in another 33 countries and the additional benefit of another accelerated timeline: the acquisition enables Ceridian to make good on its commitment to deliver Dayforce in Mexico earlier than it could have done so alone.
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