Ascender, an Australian payroll software provider, is working to expand its portfolio and offerings with their latest acquisition, the human capital management company People-Streme, a move that can strengthen the company should it continue to push into the ASX.
Currently valued at approximately $300 million, Ascender is already a key player in the AU’s payroll software market, and CEO Andrew Wilson says that its acquisition of People-Streme will give it a huge edge. Today, he says, the ~$12 billion HR tech market is heavily fragmented, with many providers offering solutions for specific needs.
He says that with this acquisition, the company can now offer a comprehensive solution that brings together HR and payroll in order to create a more connected and engaged workforce.
Ascender already has partners with several human capital management and workforce management business, but they decided to acquire People-Streme in order to help with its HR operations. Wilson says that this new acquisition combines the strengths of two companies to meet the needs of HR and payroll markets, and that, while they continue to work with their partners, the acquisition of People-Streme and the integration of their complete HR suites will help improve their ability to help their customers address changing workforce issues.
Workforces, Mr. Wilson says, the globe are undergoing significant disruption, with HR management becoming a key function inside organisations. Currently, he says that most organisations use several individual platforms to manage recruitment, payroll, talent management and employee engagement, which results in an environment that’s more complicated than it has to be, with tools and departments unable to communicate effectively with each other.
Mr. Wilson says that Ascender is eyeing an IPO, and that this acquisition puts them in a good spot for it. However, he says, that their focus is on strengthening their core products and services.
People-Streme Co-Founder and CEO Lyle Potgieter says that the deal was a big win for his current customers, who now have access to a consolidated payroll-HR solution. He says that they see in Ascender a significant opportunity to offer their customers a unique and powerful all-in-one HCM and payroll solution, which can differentiate them from others in the market, on top of being good for their customers.