Emplify Acquisition: Key Details, Impact, and What Comes Next

15Five's acquisition of Emplify for $50 million marks a significant milestone in the performance management industry. This strategic move positions 15Five as a unique player, integrating manager enablement, engagement measurement, and performance management into a single platform. The combined capabilities aim to help organizations foster highly engaged, top-performing teams, meeting the growing market demand for comprehensive HR solutions.

What Is Emplify?

Founded in 2016, Emplify specializes in employee engagement measurement and insights. Its core products include engagement surveys and analytics tools designed to provide actionable feedback for improving workplace culture. Emplify differentiates itself with its unique approach to combining quantitative data with qualitative insights, enabling organizations to make informed decisions that drive employee satisfaction and performance. This focus on data-driven engagement solutions sets Emplify apart in the competitive HR technology market.

Who Acquired Emplify?

15Five is a prominent provider of continuous performance management software, focusing on enhancing employee performance, engagement, and retention. The company's key offerings include a core platform, an HR Outcomes Dashboard, performance reviews, engagement surveys, and AI-driven features. Additionally, 15Five provides tools for compensation strategy and HRIS integration. Trusted by over 3,000 organizations, 15Five holds a significant position in the HR technology market, known for its impactful solutions that drive business success.

When Was Emplify Acquired?

15Five acquired Emplify on April 27, 2021. This acquisition came at a time when the HR technology market was rapidly evolving, with a growing emphasis on comprehensive solutions that integrate performance management and employee engagement. The move aligns with industry trends towards creating holistic platforms that address multiple facets of employee experience, reflecting the increasing demand for tools that foster both engagement and performance in the workplace.

Why Was Emplify Acquired?

• Market Expansion: The acquisition of Emplify will increase 15Five's team by more than 30% and expand its customer base to over 2,800 companies, including major clients like Spotify, Hubspot, Peloton, Credit Karma, and Siemens. This move allows 15Five to broaden its market presence by offering a more comprehensive platform that combines employee engagement and performance management.
• Technology Integration: Emplify's technology, which includes advanced engagement measurement tools, will be integrated into 15Five's existing performance management platform. This integration aims to create a robust solution that combines manager enablement, engagement measurement, and performance management, providing a more holistic approach for HR leaders and organizations.
• Competitive Advantage: The acquisition positions 15Five as the only complete platform that seamlessly integrates manager enablement, engagement measurement, and performance management. This unique offering, based on positive psychology research, provides a significant competitive edge by creating highly engaged, top-performing organizations and delivering more meaningful outcomes for customers.

Acquisition Terms

• Acquisition Price: $50 million
• Payment Method: The specific payment method was not publicly disclosed.
• Key Conditions or Agreements:
  • The acquisition will result in a 30% increase in 15Five's team size.
  • Both companies share a mission to help people achieve their true potential at work.
  • The acquisition will allow 15Five to integrate Emplify's capabilities into its platform, creating a comprehensive solution for employee performance and engagement.
  • The acquisition aligns with 15Five's mission to create highly engaged, high-performing organizations.
  • Jim Morrisroe will join as Chief Operating Officer and Julia Stead as Chief Marketing Officer to 15Five’s executive leadership team.

Impact on Emplify

The acquisition of Emplify by 15Five has led to significant changes in operations and management. The integration has resulted in a 30% increase in 15Five's team size, bringing in new talent and expertise. Key leadership changes include the addition of Jim Morrisroe as Chief Operating Officer and Julia Stead as Chief Marketing Officer. These changes aim to streamline operations and enhance the strategic direction of the combined entity, ensuring a smooth transition and effective integration of Emplify's capabilities into 15Five's platform.

On the product front, the merger has enriched 15Five's offerings by incorporating Emplify's advanced engagement measurement tools. This integration creates a more comprehensive platform that combines manager enablement, engagement measurement, and performance management. Customer reactions have been overwhelmingly positive, with clients like Kira Childers from Ontario Systems expressing enthusiasm about the enhanced capabilities. Employees are optimistic about the growth opportunities and the shared mission of both companies. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly and efficiently.