Salary.com to Acquire Genesys Software Systems, Inc.

Salary.com, Inc., a recognized leader in on-demand compensation and talent management solutions, today announced that it has signed a definitive agreement to acquire Genesys Software Systems, Inc., a leading provider of on-demand human resource management systems (HRMS), benefits and payroll services.

During its 27 year history, Genesys has provided a range of products to support the transactional needs of enterprise customers including HR administration, benefits, payroll and tax filing services. Currently, they provide HRMS services for more than 1.6 million people at customers like Landís End, Morris County – New Jersey and Tenet Healthcare Systems. Genesys is well respected for its proven, true multi-tenant payroll technology; their payroll, tax, benefits and HRMS services are sold primarily as software-as-a-service technology and support a diverse set of industries including government and hospital systems throughout the United States and Canada In addition, they spent the last several years developing a new .Net 2.0 version of their comprehensive web-based HRMS system which Salary.com will be bringing to market. The Genesys services offering scales to address the needs of companies of all sizes and requirements, including those in industries with complex needs such as government and healthcare.

Salary.comís Chief Executive Officer Kent Plunkett said, ìWe congratulate the long efforts of Genesys founder and CEO Larry Munini and COO Ruth Ladner in transforming their business in the past few years to a next generation payroll, tax and benefits software-as-a-service firm. Genesys has a newly built Microsoft .Net 2.0 on-demand technology in its HRMS offering that powers a robust payroll services suite on par with leading service providers such as Ultimate Software, ADP and Ceridian.î

Leading industry analysts have predicted the convergence of strategic and transactional solutions as the future of HR. In a recent article, Hype Cycle for Human Capital Management Software, 2008, Thomas Otter and James Holincheck, stated, ìFor HR organizations to leverage technology to become more-strategic contributors to the business, the proper foundation must be in place. This means that organizations must implement core HRMSs (employee systems of record). Also, it is important to have a well integrated set of talent management applications built on top of a common competency foundation.î

Larry Munini, CEO and founder of Genesys stated, ìSalary.com has the marketing power and the balance sheet to help us realize the value of our technology investment. The combined offerings of Salary.comís compensation management, strategic talent management and competency products, when merged with our new Genesys core HCM services capability, should make the integrated company one of the leading players in this emerging new world of integrated strategic and transactional talent management.î

Plunkett has tapped human resources technology veterans Randy Cooper and Dave Fiacco to lead the new initiative. As President of Salary.comís HRMS and Payroll division, Cooper will replace Genesys founder and current CEO Larry Munini, who will be retiring later in 2009. Cooper is the founder and former CEO of Empagio, Inc., a leading provider of mid-market focused human resource outsourcing solutions. Cooper has more than 20 years of executive leadership experience in the HRMS and payroll fields. Dave Fiacco, will be handling the service implementation and operations. Fiacco has held numerous executive-level positions over his 30-year career in business and information technology, including president of MyBenefitSource, Inc. a provider of integrated payroll, benefits and HR data management (acquired by H&R Block in 2003).

ìRandy and Dave are well known and respected figures in the HR market and both have deep industry experience that will help to integrate the acquired solutions into our overall offering,î said Plunkett.

Financial terms and other transaction details are disclosed in a Form 8-K filed today with the Securities and Exchange Commission.

Thomas Weisel Partners LLP advised Salary.com in this transaction, while Cantor Fitzgerald & Co. served as financial advisor to Genesys.