Ottawa, On & White Plains, N.Y. --Workstream Inc., a provider of Enterprise Workforce Management software, announced it has agreed to acquire privately held ProAct Technologies Corporation, a provider of HR software solutions for personalized benefits, employee communications and decision support for large employers and Business Process Outsourcers (BPO's). This transaction will be accretive and add over $10 million in revenue in calendar 2005.
"Workstream's acquisition of ProAct will deliver the industry's most comprehensive Enterprise Workforce Management suite, servicing over 10 million employees and over 400 customers across North America," says Michael Mullarkey, Chairman and CEO of Workstream. "With over $20 million of cash on hand, Workstream is continuing to invest in organic customer acquisition, product enhancements and expanding partnerships with HR BPO's.
ProAct's customers include companies such as Agilent Technologies, Cigna, Eastman Chemical Company, Johnson Controls, National Semiconductor, Proctor & Gamble, Tenneco, The Thomson Corporation, Verizon Wireless and the Walgreen Company. They will join the ranks of Workstream's own blue chip customer base which includes ChevronTexaco Corporation, Citigroup Inc., Gap Inc., Home Depot, Kaiser Permanente, Motorola, Nordstrom, VISA, Watson Wyatt, and Wells Fargo & Co.
"Workstream and ProAct share in a vision of providing a complete suite of Enterprise Workforce Management solutions to our Fortune 2000 customers with their choice of delivery and flexible purchasing options,” says Greg Rorke, President and CEOP of ProAct Technologies. “By combining forces, Workstream and ProAct are creating a strategic suite of HR offerings and product leadership poised to deliver value to organizations of all sizes."
Benefits of the acquisition:
- Combined customer base of over 400 Fortune 2000 customers;
- Software applications serving over 10 million employees per month
- A higher percentage of recurring revenue from "software as a service" applications;
- Broader suite of Enterprise Workforce Management solutions;
- Expanded distribution capability through new BPO relationships; and
- A stronger, integrated customer-facing sales and marketing organization.
"Organizations that are faced with the dilemma of whether to upgrade their aging HRMS or continue investment in PeopleSoft should consider Workstream as an ERP alternative," says Mark Smith, SVP Research and CEO of Ventana Research. "We continue to see strong demand for software as a service (SaaS) HR solutions - like those offered by Workstream - because it provides companies a high value, low risk alternative to upgrading or purchasing on-premise ERP solutions".