Ceridian to Acquire eloomi, a Market-Leading Learning and Development Platform
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The acquisition of eloomi by Ceridian represents a strategic move to enhance the company's human capital management (HCM) offerings. This acquisition is likely to have a significant impact on Ceridian's competitive positioning within the Learning Management System (LMS) market, which is projected to grow to $54.69 billion by 2032. The integration of eloomi's capabilities into the Dayforce platform could streamline learning and development processes for Ceridian's customers, potentially leading to increased customer satisfaction and retention.
From a market research perspective, the focus on mobile-first solutions and AI-driven content creation is in line with current industry trends towards accessible and efficient training programs. The emphasis on upskilling and reskilling reflects the growing demand for workforce development in response to rapid technological changes and the evolving job market. The acquisition could allow Ceridian to tap into new market segments, including extended enterprise learning for contingent labor, partners and customers, which could result in new revenue streams.
Funding the acquisition with existing balance sheet cash suggests that Ceridian is in a healthy financial position with sufficient liquidity. This method of financing avoids the potential dilution of shares or increase in financial leverage that could occur with equity or debt financing, respectively. The immediate financial impact will depend on the acquisition cost relative to Ceridian's cash reserves and the subsequent integration costs.
In the long-term, the acquisition could lead to operational synergies and cost savings, as well as potential revenue growth from cross-selling opportunities and an expanded customer base. Investors will be monitoring the post-acquisition performance closely to assess the return on investment and the impact on Ceridian's earnings per share (EPS).
The technical integration of eloomi's learning platform into Ceridian's Dayforce software is a critical aspect of this acquisition. A seamless integration is essential to realize the full potential of the combined capabilities. The single data model and experience touted by Ceridian suggests a streamlined user interface and backend processes, which could result in reduced training time and faster deployment of learning programs.
The use of AI for content authoring and the provision of a mobile-first approach are indicative of leveraging cutting-edge technology to enhance user engagement and productivity. The successful implementation of these technologies could set a new standard for LMS platforms and provide Ceridian with a significant technological edge in the HCM market.
Powerful new people development capabilities to equip Dayforce™ customers with optimized training and development programs for the extended workforce
TORONTO and MINNEAPOLIS, Jan. 18, 2024 (GLOBE NEWSWIRE) -- Ceridian (NYSE: CDAY; TSX: CDAY), a global leader in human capital management (HCM) technology, today announced it has entered into a definitive agreement to acquire eloomi, a leading learning experience platform software provider based in Copenhagen, Denmark, and Orlando, Florida. The acquisition is expected to close in Q1 2024 and will be funded with existing balance sheet cash.
“The dynamic learning and development needs of today’s boundless workforce require leading enterprise solutions. The acquisition of eloomi will help supercharge the people development capabilities of Dayforce, equipping customers with more engaging learning and development experiences, AI-driven content creation, and extended enterprise learning capabilities,” said Joe Korngiebel, Chief Product and Technology Officer, Ceridian.
With the global Learning Management System (LMS) market size expected to reach
Ceridian is seizing on this opportunity for its customers by integrating eloomi's capabilities seamlessly into the Dayforce platform to improve existing learning management and talent offerings. Dayforce customers worldwide will benefit from a single data model and a single experience that includes an end-to-end learning platform, learning content, people development, skills intelligence, and employee communications functionality.
The eloomi acquisition will introduce innovations that expand and enhance Ceridian's current learning and development offerings, such as:
- Enterprise-grade learning capabilities to support tailored training programs for the extended enterprise including employees, contingent labor, partners, and customers.
- Mobile-first frontline training and communication solutions connecting employees to engaging and accessible content and resources.
- Powerful AI co-writer that augments content authoring, saving valuable time and dramatically improving the productivity of L&D teams.
- Upskilling and reskilling functionality through curated learning content, automated suggestions for tailored training, and personalized learning paths.
- Innovative people development with clear and actionable goal management combined with automated development journeys, conversation talking points, and action items.
- Industry-leading learning content marketplace featuring high-quality content – all accessible on-demand.
- Engaging employee communications delivered through an engaging mobile and web-based news and activity feed, secure chat, and community spaces platform.
eloomi’s all-in-one, modern learning platform offers the power of a compliance-driven LMS together with the benefits of a leading Learning Experience Platform (LXP). It provides leading learning and development capabilities to more than 850 customers around the world, including BigChange, GettyImage, Icelandair, and PM Hotels.
“Our customers are at the heart of everything we do – and we couldn’t be more excited to expand the breadth and depth of our worldclass learning and development capabilities to new and existing customers with Dayforce,” said Claus Johansen, Founder and CEO, eloomi.
“Together with eloomi, we'll fulfill our shared ambition of making work life better for our customers and their modern, boundless workforce,” concluded Korngiebel.
eloomi is backed by the Export and Investment Fund of Denmark (EIFO) www.eifo.dk, Kennet Partners www.kennet.com, and Great Hill Partners www.greathillpartners.com.
About Ceridian
Ceridian. Makes Work Life Better™.
Ceridian HCM Holding Inc. (“Ceridian” or the “Company”) (NYSE:CDAY) (TSX:CDAY) is a global human capital management software company. Dayforce, our flagship cloud HCM platform, provides human resources, payroll, benefits, workforce management, and talent management functionality. Our platform is used to optimize management of the entire employee lifecycle, including attracting, engaging, paying, deploying, and developing people. Ceridian has solutions for organizations of all sizes. Visit Ceridian.com or follow us @Ceridian.
About eloomi
eloomi is a global recognized software company within learning and development. The eloomi platform makes it easy for companies worldwide to train and develop their employees, clients and partners. eloomi combines easy-to-use Learning Management System (LMS) tools with an innovative Learning Experience Platform (LXP) and Talent Management (TM) capabilities to help companies make learning and development successful. Visit eloomi.com.
Forward-Looking Statement and Risk Factors
This press release contains forward-looking statements that involve a number of risks and uncertainties. Statements that are not historical facts, including statements regarding the acquisition of eloomi; the integration of eloomi’s products into ours; the enhancement of Dayforce’s learning management and talent offerings as a result of the acquisition; and our expectations, hopes, intentions, or strategies regarding the future are forward-looking statements. Forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. Because such statements are based on expectations as to the future and are not statements of fact, actual results may differ materially from those projected. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, we undertake no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.
This press release should be read in conjunction with the risks detailed in the “Cautionary Note Regarding Forward-Looking Information,” “Forward-Looking Statement”, “Risk Factors” and other sections of Ceridian’s Quarterly Reports on Form 10-Q, Annual Reports on Form 10-K and other reports we file with the Securities and Exchange Commission. Copies of reports filed with the Securities and Exchange Commission are posted on our website and are available from us without charge.
Investor Relations contact:
Matt Wells
investors@ceridian.com
Media contact:
Teri Murphy
1- 647-417-2117
teri.murphy@ceridian.com
1 https://www.globenewswire.com/en/news-release/2023/11/22/2784882/0/en/Corporate-Learning-Management-System-LMS-Market-Size-to-Reach-USD-54-69-Bn-By-2032.html
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