Criterion HCM, a leading provider of user-friendly human capital management (HCM) solutions, has been acquired by Sage, a global leader in accounting, financial, HR, and payroll technology for small and mid-sized businesses (SMBs), expanding Sage's AI ecosystem to deliver proactive, unified tools that automate admin tasks and drive scalable growth for finance and HR teams.
The acquisition strengthens Sage's platform by incorporating Criterion's intuitive HCM solution, which unifies HR processes with embedded AI to automate repetitive tasks and provide real-time insights across the employee lifecycle. For mid-sized businesses facing fragmented tools and compliance challenges, this integration promises a single ecosystem where finance, HR, and payroll converge, fostering efficiency and strategic decision-making. “At Sage, we’re not just embedding AI into software, we’re rethinking how work gets done," said Jonathan Cowan, EVP, Human Capital Management, Platform and Services at Sage. “Criterion fits perfectly into that vision. With embedded intelligence and an intuitive experience layer, we can deliver HR and payroll that’s no longer just compliant or automated, but truly trusted and proactive.”
As organizations grow, administrative overload and disjointed systems often hinder progress. Criterion's AI-powered platform, enhanced by its ch.ai assistant, resolves these by quietly handling background automation, such as risk detection and workflow optimization, while maintaining a human-centered interface. This move extends Criterion's capabilities to Sage's global SMB base, enabling out-of-the-box, cloud-native solutions that scale internationally and integrate natively with Sage's financial tools, reducing silos and empowering teams to focus on growth rather than bureaucracy.
Founded in 2014 by co-founders Sunil Reddy and Uma Reddy, Criterion has achieved rapid expansion, boasting a 95% customer satisfaction rate and 100% uptime while serving diverse sectors like construction, nonprofits, and financial services. “Our mission with Criterion has always been to make HR a growth driver, not a blocker,” said Sunil Reddy, CEO of Criterion. “With Sage’s backing, we can now take that vision global, delivering practical, human-first AI that’s purpose-built for the real world of business.” “From the beginning, we built Criterion with a deep focus on people and innovation,” added Uma Reddy, Co-founder of Criterion. “This next chapter with Sage gives us the scale and reach to make that vision a reality.”
The deal, advised by Piper Sandler and Egan Nelson, positions Sage to tackle digital and economic inequalities through accessible technology, aligning with its mission to support millions of SMBs worldwide.
Sage exists to knock down barriers so everyone can thrive, starting with the millions of Small and Mid-Sized Businesses (SMBs) served by us, our partners and accountants. Customers trust our finance, HR and payroll software to make work and money flow. By digitising business processes and relationships with customers, suppliers, employees, banks and governments, our digital network connects SMBs, removing friction and delivering insights. Knocking down barriers also means we use our time, technology and experience to tackle digital inequality, economic inequality and the climate crisis.
Criterion offers an HR platform people actually love, combining built-in flexibility with a commitment to meeting every business’s unique needs.
Our purpose-built platform enhanced by ch.ai - our unique AI capability - seamlessly adapts to each organization's specific challenges, delivering a unified, intuitive, and powerful user experience. With a focus on realized ROI, Criterion simplifies complex HR tasks, boosts efficiency, and ensures customer satisfaction. We proudly serve customers across 10+ countries, achieving a 95% satisfaction rate and 100% uptime.
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