UKG Inc. has entered into a definitive agreement to acquire Inova Payroll, a move that significantly expands its ability to serve the small and mid-sized business (SMB) market directly. The acquisition will combine UKG's AI-driven HR and workforce management technology with Inova's deep service expertise in payroll, outsourced HR, and benefits brokerage for over 4,000 businesses.
UKG agrees to acquire SMB-focused HCM and payroll services provider Inova Payroll.
The deal strengthens UKG's direct offerings and support for the small and mid-sized business segment.
Inova, a top reseller of UKG Ready since 2007, serves over 4,000 businesses.
Acquisition adds outsourced HR support and full benefits brokerage services to UKG's SMB portfolio.
The transaction is expected to close in early 2026, subject to standard conditions.
The combination aims to deliver enhanced frontline employee experiences for SMBs.
This strategic acquisition enables UKG to deepen its direct relationship with the SMB market by integrating Inova's specialized service model. Inova has operated as the largest nationwide reseller of the UKG Ready suite, providing clients with hands-on HR support and benefits administration. Bringing this capability in-house allows UKG to offer a more comprehensive, service-augmented technology solution directly to SMBs, helping them manage compliance, streamline HR tasks, and better support their employees, particularly frontline workers.
The move addresses a clear market need by pairing UKG's scalable AI platform and technology resources with Inova's proven, empathy-driven service approach tailored for smaller businesses.
Leadership from both companies highlighted the synergistic potential of the deal. UKG gains Inova's deep operational knowledge and strong reputation in attracting and supporting SMB clients, while Inova's team and clients will gain enhanced access to UKG's product development and innovation resources.
"Inova has been a trusted UKG Ready partner since 2007, helping thousands of small and mid-sized businesses level the playing field against larger competitors," said Arlen Shenkman, President and Chief Financial Officer at UKG. "Together, Inova and UKG will have an even greater impact on the SMB market segment, combining UKG’s technology and scale with Inova’s deep service expertise."
Joe Schweppe, CEO at Inova Payroll, stated, "Joining UKG marks an exciting new chapter for Inova... Our team and clients will benefit from direct access to enhanced product development, while UKG gains the advantage of our deep expertise in attracting and supporting small and mid-sized businesses."
Inova brings a strong track record of growth and customer satisfaction to UKG, having been named to the Inc. 5000 list eight times and earning multiple awards from review platforms like G2. This acquisition is a logical expansion of a long-standing partnership and underscores UKG's commitment to capturing a larger share of the competitive SMB HCM market by offering an end-to-end solution that blends sophisticated technology with personalized service.
The acquisition, pending customary closing conditions, is slated for completion in early 2026 and represents a consolidation within the HCM landscape aimed at delivering more value to the underserved SMB sector.
About UKG
UKG is a leading global AI platform for HR, pay, and workforce management. Unifying award-winning solutions with the world’s largest collection of workforce data and people-first AI, UKG delivers unrivaled insights into today’s workforce, helping organizations in every industry turn data into decisions that elevate productivity, culture, and the customer experience. Trusted by more than 80,000 organizations across 150 countries, tens of millions of employees — from small businesses to global enterprises — use UKG every day.
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