Monday, March 1, 2004

Software

Workscape picks up Burlington's Performaworks

By Jim Malone

After a search that looked at more than two dozen companies in the human resources tech market, Framingham-based Workscape Inc. did its shopping at home, announcing today it has acquired Burlington's Performaworks.

Financial details of the deal were not disclosed.

"We looked at 28 competitors," said Betsy Zikakis, senior vice president, marketing and product strategy, for Workcape. "Performaworks had a product that we think had the best functionality to complement our Compensation Planner technology fit, and support large customers."

Zikakis and Paul Schaut, Performaworks president and CEO, explained that Workscape's main product is Compensation Planner, a product that helps companies reward high performance with bonuses and overall performance through base pay. Performaworks specialty is aligning a company's overall strategic goals with individuals' goals. Employees that contribute most to strategic corporate objectives are rewarded.

"We're excited about the fit," said Schaut, who becomes executive vice president, workforce management strategy and development, after the sale is finalized. "We look forward to putting these two companies together and accelerating growth. We've already started looking at the opportunities for cross-selling and the pent-up demand for Workscape's Compensation Planner. It's going to be a busy year."

Zikakis and Schaut said most of Performaworks' 50 employees would move from the Burlington office to Framingham. Workscape employs about 400 people.

Analysts estimate the broader workforce management market to be about $4 billion a year, and is growing at a 25 percent annual rate.

Workscape customers include General Motors, General Dynamics. Genzyme Corp. and Dow Chemical. Performaworks customers include Eaton Vance, Seagate, Jet Blue and Wachovia Bank.

Schaut said Performaworks wanted to get bigger faster, and they certainly have.

"Performaworks has been around for some time with a performance management focus. We're well received in the market. We found the opportunity to pair up with Workscape attractive because of the strategic fit."