In a significant development in the WFM and HCM markets, ADP has acquired WorkForce Software, a global provider of WFM solutions with integrated employee experience capabilities. The deal, estimated at $1.2bn, was finalized on October 15th. ADP is a publicly traded company, while Workforce Software is backed by Evergreen Coast Capital Corp., the technology-focused private equity arm of Elliott Management Corporation, and Insight Partners, an investor in WorkForce Software since 2014. The acquisition aims to combine the strengths of both organizations to provide innovative, seamless WFM solutions.  

ADP recognizes the increasing demand for mature global WFM solutions and its own need to strengthen its offerings in this area. WorkForce Software’s global expertise was a key reason for the acquisition, as it provides ADP with capabilities to expand its footprint in markets where compliance and the ability to manage complex workforce regulations are a top buyer demand. WorkForce Software has proven experience in handling complex workforce requirements, particularly for large global enterprises, and has had significant success in international markets. The company has deep expertise in providing functionality related to global compliance, including labor regulations in countries like Brazil, Australia, and New Zealand, which are critical to ADP’s international clients and global growth strategy.

The organizations have outlined their strategy for the next 12 months, which focuses on improving product synergies and integration. While the immediate priority is to ensure that the two solutions work together seamlessly, key focus areas also include improving the user experience, data integration, and ensuring that clients can benefit from a more unified product offering.

WorkForce Software supports ~1.4k clients across ~120 countries. ADP has ~125k WFM clients in 125+ countries. There are currently 180+ shared clients using both ADP and WorkForce Software solutions. This shared client base highlights the potential for deeper integrations in the future, allowing for a more streamlined user experience. While integration plans are in development, existing products and solutions will continue regular operations and there is no immediate need for clients to migrate to ADP's HR or payroll platforms. Clients will continue to receive service and support from both teams, with full integration expected over the next 12-24 months.

As part of the acquisition, WorkForce Software’s ~700 employees were added to the estimated ~3k ADP employees dedicated to supporting its WFM business. Beyond the strategic and technical benefits, cultural alignment was also a significant factor in the decision-making process. Both ADP and WorkForce Software prioritize partnership and collaboration with their clients. This alignment is critical for ensuring a smooth integration process and continued success in the market.

In its Q1 FY2025 earnings report released on October 30^th, ADP raised its previous full-year revenue growth forecast from 5-6% to 6-7%, citing expected benefits from the acquisition, including a broader set of capabilities and expanded global expertise. It is expected that clients, including those in the late stages of sales cycles, will see a significant value-add to their ongoing investment in these technologies as the addition of WorkForce Software to ADP’s portfolio brings a robust new offering for organizations with complex WFM needs. The companies also plan to continue to expand their partnership strategies and collaborate with key ISVs like SAP, Accenture, and PwC.

ADP’s acquisition of WorkForce Software marks a significant moment for the WFM industry. With its focus on client success, product innovation, and global expansion, the acquisition brings together two software and service providers with complementary strengths. As the integration progresses, the focus will remain on delivering a seamless and enhanced experience for clients, while ensuring that both organizations continue to innovate to meet the evolving needs of the global workforce.