Kronos Incorporated

Kronos Incorporated was an American multinational software company focused on workforce management and human capital management. Its products helped employers record working time, manage attendance, prepare schedules, administer leave, support payroll-related processes, and organize workforce data. The company served employers across sectors including retail, manufacturing, healthcare, education, government, and other large organizations. Founded in 1977 by Mark S. Ain, Kronos built its business around the use of electronic and computer-based systems to replace manual timekeeping and attendance procedures. In 1979, it introduced what it described as the first microprocessor-based time clock, and in 1985 it launched a PC-based time-and-attendance product. These products established the company in an enterprise market where accurate labor records, scheduling, and compliance were operationally important. Kronos became a public company on NASDAQ in 1992. Under Mark Ain, it developed a long record of growth and profitability in the software industry. His brother Aron Ain became chief executive officer in 2005. In 2007, the company was taken private in a transaction led by Hellman & Friedman, with participation from JMI Equity. Blackstone and GIC later invested alongside the existing private-equity owners in 2014. That transaction valued Kronos at $4.5 billion, and the company reported reaching $1 billion in annual revenue during the same year. The company expanded both organically and through acquisitions. Its portfolio grew beyond traditional time clocks into broader workforce management, human resources, scheduling, recruiting-related assessment, and cloud-based software. Acquisitions included the Workforce Solutions software division of SimplexGrinnell, Stromberg, Principal Decision Systems International, SaaShr.com, OptiLink, TimeLink, Empower Software Solutions, Financial Management Solutions, and Digital Instinct. Kronos also developed cloud offerings, including Kronos Private Cloud, as employers increasingly moved enterprise applications away from locally managed infrastructure. Kronos relocated its corporate headquarters from Chelmsford to Cross Point Towers in Lowell, Massachusetts, in 2017. In February 2020, it announced a merger with Ultimate Software. The transaction closed on April 1, 2020, creating Ultimate Kronos Group, generally known as UKG, with Aron Ain as its first chief executive. The merger ended Kronos as an independent company, although its technologies and product heritage continued within the combined organization. During the COVID-19 pandemic, Kronos introduced an automated reporting tool intended to help organizations trace potential workplace exposure using attendance and work records. In December 2021, the company disclosed that a ransomware attack discovered on December 11 had disrupted Kronos Private Cloud functionality for potentially several weeks. Many customers had to use manual workarounds, including paper checks, to process employee pay. This incident became one of the most consequential late-period events associated with the Kronos brand. Following the merger with Ultimate Software, the standalone Kronos corporate identity was superseded by UKG.

Kronos was founded in 1977 by Mark S. Ain, an alumnus of the Massachusetts Institute of Technology and Simon Business School. From the beginning, the company concentrated on automating employee timekeeping, an area traditionally handled through paper records, mechanical clocks, and manual administrative procedures. In 1979, Kronos delivered a microprocessor-based time clock, helping establish its early identity as a specialist in computerized workforce records. In 1985, it introduced a PC-based time-and-attendance product, extending its technology from dedicated clock hardware into software-supported administration. The company expanded as employers sought more integrated systems for recording hours, administering attendance, and planning labor. Kronos became publicly traded on NASDAQ in 1992. Under Mark Ain's leadership, it developed a sustained record of growth and profitability and broadened its offerings beyond time clocks. Workforce scheduling, human resources administration, analytics, recruiting-related assessment, and cloud delivery became increasingly important parts of its business. Kronos used acquisitions to add technology and market reach. In 2002, it acquired the Workforce Solutions software division of SimplexGrinnell. It acquired Stromberg from Paychex in 2009 and Principal Decision Systems International in 2011. In 2012, it purchased SaaShr.com and OptiLink, followed by TimeLink International Corporation in 2013. The company acquired Empower Software Solutions in 2016, and Financial Management Solutions and Digital Instinct Pty. Limited in 2017. These transactions supported the development of a broader workforce and human-capital software portfolio. Aron Ain succeeded his brother Mark Ain as Kronos chief executive in 2005. In March 2007, Hellman & Friedman, with secondary investment from JMI Equity, acquired the company for approximately $1.74 billion and took it private. Blackstone and GIC joined Hellman & Friedman and JMI Equity as investors in 2014. The transaction valued Kronos at $4.5 billion, and the company reached $1 billion in annual revenue during that year. Kronos moved its headquarters from nearby Chelmsford to Cross Point Towers in Lowell in 2017, consolidating offices in a new corporate location. The company's legal and operational history also included disputes concerning the use of its assessment technology. In 2012, the Third Circuit Court of Appeals upheld enforcement of an Equal Employment Opportunity Commission subpoena for documents in a disability-discrimination administrative charge involving Kroger's use of a Kronos assessment. Kronos was not the employer in the underlying matter and argued that the requested information was irrelevant and could expose trade secrets. In February 2020, Kronos announced a merger with Ultimate Software. The combination was completed on April 1, 2020, creating Ultimate Kronos Group, or UKG. Aron Ain became the combined organization's first chief executive. The merger took place during the COVID-19 pandemic, when Kronos also introduced an automated reporting tool designed to help employers identify potentially exposed coworkers from work and attendance data. A major late-period disruption occurred in December 2021. Kronos announced that it had discovered a ransomware attack on December 11 that disabled functionality in its Kronos Private Cloud environment for up to several weeks. Because customers depended on the platform for time records and payroll-related processes, municipalities, universities, and private employers used alternative procedures, including paper checks. The incident marked a significant cybersecurity and service-continuity event in the history of the brand. After the Ultimate Software merger, Kronos ceased operating as a standalone company, with its products and capabilities continuing within UKG.

• 2021

  Kronos Private Cloud ransomware disruption

  [1]Kronos Incorporateden.wikipedia.org

  A ransomware attack discovered on December 11 disrupted Kronos Private Cloud services for potentially several weeks.

• 2020

  Ultimate Kronos Group formed

  [1]Kronos Incorporateden.wikipedia.org

  The merger with Ultimate Software was completed on April 1, forming Ultimate Kronos Group with Aron Ain as its first chief executive.

• 2017

  Headquarters moved to Lowell

  [1]Kronos Incorporateden.wikipedia.org

  Kronos moved its corporate headquarters from Chelmsford to Cross Point Towers in Lowell, Massachusetts.

• 2014

  New private-equity investment

  [1]Kronos Incorporateden.wikipedia.org

  Blackstone and GIC invested alongside Hellman & Friedman and JMI Equity. The transaction valued Kronos at $4.5 billion, and the company reached $1 billion in annual revenue during the year.

• 2007

  Kronos returns to private ownership

  [1]Kronos Incorporateden.wikipedia.org

  Hellman & Friedman and JMI Equity acquired Kronos in a transaction reported at approximately $1.74 billion.

• 2005

  Aron Ain becomes chief executive

  [1]Kronos Incorporateden.wikipedia.org

  Aron Ain succeeded Mark S. Ain as chief executive officer.

• 2002

  SimplexGrinnell Workforce Solutions acquisition

  [1]Kronos Incorporateden.wikipedia.org

  Kronos acquired the Workforce Solutions software division of SimplexGrinnell.

• 1992

  Public listing on NASDAQ

  [1]Kronos Incorporateden.wikipedia.org

  Kronos became a publicly traded company on NASDAQ.

• 1985

  First PC-based time-and-attendance product

  [1]Kronos Incorporateden.wikipedia.org

  The company delivered its first PC-based time-and-attendance product, expanding beyond dedicated clock hardware.

• 1979

  Microprocessor-based time clock introduced

  [1]Kronos Incorporateden.wikipedia.org

  Kronos delivered a microprocessor-based time clock, an early product milestone in its workforce technology business.

• 1977

  Kronos is founded

  [1]Kronos Incorporateden.wikipedia.org

  Mark S. Ain founded Kronos as a technology company focused on automating employee timekeeping and attendance processes.

Enterprise workforce management and human capital management technology for organizations seeking to automate timekeeping, scheduling, attendance, and workforce administration.

• Workforce management and human capital management software

  Kronos Workforce Central

  Kronos Workforce Central was a core enterprise software suite for workforce administration. It supported functions such as time and attendance, scheduling, absence management, workforce data, and related human resources processes. The suite represented Kronos's expansion from electronic time clocks into integrated software used by large employers across multiple industries.

• Cloud workforce management platform

  Kronos Private Cloud

  Kronos Private Cloud delivered Kronos workforce applications through a hosted private-cloud environment. It was used by customers for timekeeping, attendance, scheduling, and related workforce processes. The platform became a major service dependency for customers and was materially disrupted by the ransomware incident disclosed in December 2021.

• Timekeeping hardware · 1979

  Microprocessor-based time clock

  Introduced in 1979, Kronos's microprocessor-based time clock automated the capture of employee work times. It was an early example of the company's effort to modernize attendance records through electronic systems.

• Time and attendance software · 1985

  PC-based time-and-attendance product

  Kronos's first PC-based time-and-attendance product, introduced in 1985, connected workforce recordkeeping with personal-computer software. It extended the company's product model beyond dedicated clock hardware and supported the later development of broader workforce management systems.

• 2021

  Kronos Private Cloud ransomware attack

  Kronos disclosed that a ransomware attack discovered on December 11 disabled functionality in its Private Cloud environment for up to several weeks. Customers, including municipalities, universities, and private employers, had to use alternative timekeeping and payroll procedures, with some issuing paper checks.

  Source

Read more

• 2020COVID-19 contact-tracing reporting tool

  United States · Other markets served by Kronos

  Kronos introduced an automated report-generating tool during the COVID-19 pandemic. The tool analyzed work and attendance records for employees who tested positive or were presumed positive and produced reports identifying potentially affected coworkers.

  Outcome. The tool was offered as a pandemic-response capability for employers managing workplace exposure information.

  Source

• 2021

  Response to ransomware service disruptionOther

  Background

  A ransomware attack discovered on December 11 disrupted Kronos Private Cloud functionality and affected customers' timekeeping and payroll-related operations.

  Action taken

  Kronos disclosed the incident and warned that service functionality could be unavailable for up to several weeks, requiring customers to use manual alternatives.

  Aftermath

  Some customers resorted to paper checks and other manual procedures while the hosted services were unavailable.

  Source

• 2020

  Merger with Ultimate SoftwareM&A

  Background

  Kronos and Ultimate Software combined to create a larger provider spanning workforce management and human capital management.

  Action taken

  The merger was announced in February and completed on April 1, 2020, forming Ultimate Kronos Group.

  Aftermath

  Kronos ceased operating as an independent company, while its products and technology continued within UKG. Aron Ain led the combined organization as its first chief executive.

  Source

• 2014

  Blackstone and GIC investmentM&A

  Background

  Kronos sought additional private-equity investment while continuing its expansion in workforce and human capital software.

  Action taken

  Blackstone and GIC invested alongside Hellman & Friedman and JMI Equity.

  Aftermath

  The transaction valued Kronos at $4.5 billion and coincided with the company's first year reaching $1 billion in annual revenue.

  Company valuation. $4.5 billion (2014)

  Source

• 2007

  Private-equity buyoutM&A

  Background

  Kronos moved from public ownership to private ownership after a transaction led by Hellman & Friedman with JMI Equity as a secondary investor.

  Action taken

  The investors acquired the company for approximately $1.74 billion.

  Aftermath

  Kronos continued operating as a private company and later received additional investment from Blackstone and GIC.

  Acquisition value. $1.74 billion (March 2007)

  Source

1. 1Kronos Incorporateden.wikipedia.org