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05.01.2005 16:09:00

RSM McGladrey Employer Services Acquires Ceridian's SourceWeb Busines

RSM McGladrey Employer Services Acquires Ceridian's SourceWeb Business


    Business Editors

    ATLANTA--(BUSINESS WIRE)--Jan. 5, 2005--RSM McGladrey Employer Services announced today that it acquired Ceridian's SourceWeb HR/payroll and self-service product and existing SourceWeb base of over 800 small and mid-size business customers throughout the United States.
    The acquisition establishes RSM McGladrey Employer Services as one of the leading providers of integrated payroll, benefits administration, HR data management and brokerage services to small and mid-size businesses.
    "This acquisition directly benefits small and mid-sized businesses throughout the United States," said Robert Digby, president of RSM McGladrey Employer Services. "We are now positioned better than ever to offer a full suite of competitively priced payroll and benefits services, backed up by outstanding customer service."
    The decision to sell SourceWeb enables Ceridian to streamline delivery of its small business solutions and concentrate resources on other HR/payroll platforms.
    "We will be working with RSM McGladrey Employer Services to ensure a smooth transition," said Robert H. "Bo" Ewald, president of Ceridian Human Resource Solutions. "This agreement allows customers who have selected the SourceWeb solution to work with a company that is committed to supporting the Ultimate Software platform."
    Over the next nine months RSM McGladrey Employer Services will absorb many of Ceridian's SourceWeb employees, thus providing continuity of service to clients. In addition, the existing relationship between RSM McGladrey Employer Services and Ultimate Software (Nasdaq: ULTI) is strengthened as Ultimate Software's UltiPro software, which currently powers the Ceridian SourceWeb HR/Payroll and self-service solution for small businesses, will continue to be used by all clients.
    "We're excited that RSM McGladrey Employer Services has decided to expand upon its existing relationship with Ultimate Software," said Marc Scherr, vice chairman and chief operating officer of Ultimate Software. "RSM McGladrey Employer Services' exceptionally strong commitment to personalized customer service and quality customer experience is closely aligned with Ultimate Software's."
    RSM McGladrey Employer Services, part of RSM McGladrey Business Services, a wholly owned subsidiary of H&R Block, pioneered the concept of pairing extensive brokerage services and relationships with an integrated payroll, benefits administration and HR services technology platform. Through this acquisition RSM McGladrey Employer Services will expand its footprint nationally by picking up a number of sales representatives in numerous markets.

    About RSM McGladrey Employer Services

    RSM McGladrey Employer Services, Inc., offers integrated HR and benefits services, including benefits brokerage, consultation and administration, HR data management and payroll processing. The combination of benefits services integrated with key HR functions reduces the need for multiple vendors and systems and makes RSM McGladrey Employer Services unique in the marketplace. RSM McGladrey Employer Services is part of RSM McGladrey Business Services, an H&R Block (NYSE: HRB) wholly owned subsidiary. For more information about RSM McGladrey Employer Services visit http://www.rsmes.com or call (877) 449-7727.

    About RSM McGladrey

    The RSM McGladrey group of companies, based in Bloomington, Minn., comprises financially focused business services providers that serve midsize companies with tax and business consulting, retirement resources, payroll services, corporate finance, wealth management and financial process outsourcing. It has 100 offices in the United States. RSM McGladrey helps clients with global business needs through its membership in RSM International (an affiliation of separate and independent accounting and consulting firms). RSM McGladrey Inc. and McGladrey & Pullen LLP (a partner-owned CPA firm) have an alternative practice structure. Though separate and independent legal entities, they work together to serve clients' business needs. When considered together, the two companies rank as the fifth-largest provider of accounting, tax and business consulting in the United States. For more information about RSM McGladrey visit http://www.rsmmcgladrey.com or call (800) 274-3978.

    About Ceridian

    Ceridian, based in Minneapolis, enables companies to be free to succeed in their core business through its suite of innovative managed business solutions for HRMS, payroll, tax filing, application outsourcing, time and attendance, benefits administration and employee effectiveness services. Ceridian Corporation (NYSE: CEN) is an information services company serving businesses and employees in the United States, Canada and Europe. For more information about Ceridian's comprehensive array of human resource solutions, visit http://www.myceridian.com or call (800) 729-7655.

    About Ultimate Software

    Ultimate Software (Nasdaq: ULTI), a leading provider of Web-based payroll and workforce management solutions, markets award-winning UltiPro as licensed software, as a hosted application through Intersourcing, and as a co-branded offering to Business Service Providers under the "Powered by UltiPro" brand. The Company employs 450 professionals who are united in their commitment to developing trend-setting solutions and delivering quality service. Ultimate Software customers represent diverse industries and include such organizations as Benihana Restaurants, The Container Store, Elizabeth Arden, The Florida Marlins Baseball Team, The New York Yankees Baseball Team, Omni Hotels, Ruth's Chris Steak House, SkyWest Airlines, and Trammell Crow Residential. More information on Ultimate Software's products and services can be found at http://www.ultimatesoftware.com.

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CONTACT: RSM McGladrey Employer Services Gabriel Romero, 678-795-5888 gromero@rsmes.com

KEYWORD: GEORGIA INDUSTRY KEYWORD: HUMAN RESOURCES MERGERS/ACQ SOURCE: RSM McGladrey Employer Services

Copyright Business Wire 2005

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