Recently, the New Jersey tech community learned that EverythingBenefits, a New Providence-based startup that automates all the functions around employee benefits, had been acquired by Ultimate Kronos Group, or UKG. UKG, based in Lowell, Massachusetts, was formed by the 2020 merger of HR solutions companies Ultimate Software and Kronos Inc.
UKG and EverythingBenefits already had a technology partnership. This acquisition will create new opportunities to further unify their solutions and harmonize the customer experience, UKG said in its news release.
While the terms of the deal weren’t disclosed, former EverythingBenefits co-founder and CEO Rachel Lyubovitzky agreed to talk to us about the ins and outs of the acquisition. Lyubovitzky is a serial entrepreneur who has successfully built and sold several companies.
Tech Trends: Congratulations, Rachel. Can you tell us how the acquisition came about?
Rachel Lyubovitzky: Thank you, Esther! It was similar to how it went previously. The company was doing great. We were actually in the middle of a hiring spree — you probably saw our postings for this role and that role — and we had just rolled out a new leave-of-absence management product. We were approached by UKG.
TT: So, how did you get comfortable with the company acquiring you?
RL: We were familiar with the UKG team that was formerly a part of Kronos. Kronos had acquired our previous company, called SaaSHR. This solution is now known as UKG Ready. Kronos made that solution global, and now there are millions of people out there using the last product that we built. So, we knew that these guys will do a great job continuing to scale EverythingBenefits. We were partnering with UKG on this new venture, and so we felt that our company and solutions were a great fit and would be in good hands.
TT: Did any of the leadership stay with the new company?
RL: Well, they already had a CEO, but my co-founders involved in the technology development are staying to make sure the transfer of technology goes smoothly and that UKG is able to continue to grow and support the product.
TT: How was the result for you and your co-founders? I know you can’t disclose the terms of the deal.
RL: I can just say that it was a great outcome for all involved. UKG is a great team, and we are excited about what they will continue to do for the product roadmap.
TT: Where were your employees located?
RL: Most of our employees are located here in New Jersey, working remotely due to COVID. They are staying here in New Jersey. At the time of the sale, we had about 80 New Jersey employees and about 10 elsewhere around the U.S. We also had workforce outside of the U.S. So, all in all, we had a total of about 130 people.
TT: I know you are a serial entrepreneur, so, what’s next for you?
RL: Now that we have our shots, I look forward to spending some more time with family and traveling a bit. I also would like to spend some time reflecting on the lessons from this experience, to make the next one even more exciting. Having been through this a number of times before, it may be just a matter of time until the entrepreneurial bug strikes again.
TT: Can you share some things you learned during your experience at EverythingBenefits?
RL: When I think back on it, I think the most important thing was the relationships we made along the way. We were very fortunate to meet our Series A investor, Arthur Ventures (based in Minneapolis), who really lit a fire under us. They were a huge inspiration, and brought in a great amount of operational experience that helped us scale quickly. With their help, we’ve taken this company much farther than our previous ventures.
We were also lucky to assemble a truly amazing team. Colleen Bryson, VP of client success, who singlehandedly built a team that handled 11,000 corporate customers; Scott Taylor, our national sales director, who redefined how an enterprise sale should be done; Rachel Yancius, who headed the EverythingBenefits marketing team and seamlessly navigated this combination of exact science and art; James Lambariello, who helped us build such a great partner network; and many others. It was the people and the relationships that got us to where we are.