SumTotal Continues Acquisition Push

HR software provider SumTotal Systems Inc. announced two acquisitions on July 7, adding to the consolidation among makers of human resources applications.

Gainesville, Florida-based SumTotal said it acquired CyberShift Inc., which provides workforce management and expense software, and Accero Inc., which makes payroll and benefits software. The moves come on the heels of other acquisitions by SumTotal in the past year and position it as a more comprehensive HR software vendor.

Terms of the acquisitions were not disclosed.

SumTotal, with more than 3,400 customers and 43 million users, has roots as a maker of learning management system software, which tracks employee training.

Other firms that began with targeted HR software applications also have been expanding their breadth in a bid to meet customer calls for an integrated set of talent management tools. SuccessFactors has gobbled up a number of vendors, including Plateau Systems. And Taleo Corp. has acquired firms including Worldwide Compensation Inc.

“Customers are requiring more end-to-end solutions for enabling strategic, high-value [human capital management] processes across their entire organization, while having ‘one-hand-to-shake’ with their delivery partner,” said John Borgerding, CEO of SumTotal Systems, in a written statement.

Industry consolidation can lead to more financially viable software vendors and more holistic product packages. But tie-ups also carry risks, including the possibility that preferred products will stagnate under a new owner. In a statement, SumTotal said it “will continue to support and innovate all product lines and ensure existing customer investments remain secure.”

—Ed Frauenheim