Stifel analyst Brad Reback notes that privately-held Ultimate Software and Kronos announced that the two companies have agreed to merge via an all-stock transaction. Since the Ultimate acquisition was just announced over a year ago, the analyst has felt that combining Ultimate and Kronos's respective product offerings under the joint ownership structure of Hellman & Friedman would make long-term strategic sense as it would create a single company that could more effectively address all aspects of the HCM spectrum. More importantly, Reback believes this deal clearly demonstrates the strong secular demand for more modernized, cloud-based HCM solutions, which should help to drive healthy sustained, double-digit top-line growth for the likes of Paycom (PAYC), Paylocity (PCTY), and Workday (WDAY).