San Diego, CA – Capstone Partners LLC, a leading international investment banking firm, has successfully represented KMS Software Company LLC in its sale to SAP AG. Terms of the transaction were not disclosed.
KMS is a leading provider of web-based human capital management software and solutions focused in the area of electronic on-boarding, off-boarding, forms management and new employee engagement. The Company’s XpressHR software platform is delivered via a SaaS model, allowing clients to on-board new employees, verify employment eligibility, process government and corporate forms, provision necessary assets and materials for new employees and indoctrinate new employees in client culture and procedures. Its world-class customer base includes industry leaders such as Bank of America, Citigroup, GE, Kodak, KPMG, Ross Stores, 24 Hour Fitness and many others.
SAP, a world leader in enterprise software, will incorporate KMS into its SuccessFactors business unit. SuccessFactors provides employee performance, compensation, career goal, recruitment and succession management SaaS for businesses globally. The acquisition of KMS serves to provide SuccessFactors with a market leading on-boarding solution to bolster its workforce management solutions.
Robert Jordan, CEO of KMS, remarked, “I was very impressed with Capstone Partners, particularly for their depth of knowledge in the technology sector and ability to navigate complex issues with ease and professionalism. David Michaels and Teak Murphy took a ‘roll up the sleeves’ approach to managing the deal cycle, which kept the negotiations on course. The level of attention and overall deal expertise was instrumental to the success of our transaction. I look forward to the opportunity to utilize Capstone’s services again in the future.”
Capstone’s team consisting of David Michaels, Managing Director and Head of Technology & Telecom, and Teak Murphy, Vice President, managed the transaction on behalf of KMS. David Michaels commented, “KMS Software has been a pioneer in the on-boarding space with market-leading functionality and an impressive base of enterprise customers. The acquisition provides SAP’s SuccessFactors business unit with a best-of-breed on-boarding solution that fits well strategically within their comprehensive human capital management product portfolio. The transaction also further reinforces that M&A activity remains robust in the Enterprise Cloud & SaaS market with more than $30B in announced deal value and more than 550 transactions in the last twelve months according to Capstone research.”
Capstone Partners LLC is a leading international investment banking firm dedicated to serving the corporate finance needs of middle market business owners, investors and creditors. The firm provides merger & acquisition, private placement, corporate restructuring, valuation and financial advisory services. Capstone has significantly expanded its capabilities in the technology sector over the last twelve months with the acquisition of SagePoint Advisors based in California and Grenport Limited based in London. The firm also possesses merchant banking capabilities to actively co-invest in transactions.
