Zellis has announced its strategic plans to enhance its offerings in the realm of human resources and payroll through the acquisition of elementsuite, an AI-powered workforce management platform. This move, revealed on January 9th, marks Zellis' intention to create a comprehensive, end-to-end AI-enhanced HR and payroll solution tailored for larger companies operating in the U.K. and Ireland, particularly those boasting a workforce of over 1,000 employees.
The acquisition, contingent upon standard closing conditions, is intended to integrate elementsuite’s advanced HR technology with Zellis’ well-established payroll and HR capabilities. Abigail Vaughan, CEO of the Zellis business unit, remarked in a press release, "Bringing together the depth of talent across both businesses and combining the strength of elementsuite’s HR and AI capabilities with Zellis’ payroll, HR and AI capabilities will deliver even more value to our combined customers." The merger of the two entities is expected to result in a unified company, amplifying the service offerings available to clients.
Steve Elcock, CEO and founder of elementsuite, highlighted the potential for growth stemming from the acquisition, stating, “Zellis’ leadership in payroll will further enhance our overall offering and will help us better meet market demand.” This suggests a reliance on Zellis’ existing infrastructure to scale elementsuite’s technology more broadly across the market.
The backdrop of this acquisition can be traced to Zellis' parent company, Zellis Group, which was recently acquired by private equity firm Apax Partners in April. Apax Partners indicated that Zellis’ payroll solutions are currently in use by nearly one-third of the FTSE 100 companies, managing payroll and rewards for approximately five million individuals each month. Roy Mackenzie from Apax Partners conveyed confidence in Zellis' capacity for sustained success, noting the company’s extensive investment in technology and its market approach.
In a related industry development, Deel, a global HR and payroll product provider, made headlines in April with its acquisition of Atlantic Money, a London-based money transfer service. This move was aimed at strengthening Deel's payment capabilities in Europe, with Atlantic Money having processed over half a billion pounds for 10,000 global clients since its inception two years before.
The landscape of human resources and payroll automation continues to evolve, with significant investments being funneled into platforms aimed at small to medium-sized enterprises (SMEs). For instance, the financial and HR software provider finally secured $200 million in funding to expand its suite of services, which includes tools for bookkeeping, payroll, bill payment, and expense management. The continual focus on automation and AI in HR practices reflects a growing trend among businesses seeking innovative solutions to streamline operations and enhance workforce management.
Source: Noah Wire Services