UKG has entered into a definitive agreement to acquire Inova Payroll, a U.S.-based human capital management and payroll services provider focused on small and mid-sized businesses. UKG said the transaction will strengthen its ability to directly serve the SMB market with expanded offerings that include outsourced HR support and full benefits brokerage services. The acquisition is subject to customary closing conditions and is expected to close in early 2026.
Inova is based in Nashville, Tennessee, and serves more than 4,000 businesses. UKG said Inova is the largest reseller of the UKG Ready suite nationwide and has supported employers with outsourced expertise and benefits services to simplify day-to-day HR operations and compliance, particularly for SMBs with frontline workforces. The companies said the combination will bring together UKG’s technology platform and scale with Inova’s service capabilities, alongside third-party technology integrations that streamline essential processes and reduce manual effort.
UKG positioned the deal as a move to broaden its support for smaller employers, expanding beyond software delivery to provide more direct services. Inova’s customer base and track record in the UKG Ready ecosystem are expected to give UKG a larger footprint in the SMB segment and additional operational expertise for companies seeking bundled technology and hands-on support.
Inova has appeared on the annual Inc. 5000 list of the fastest-growing private companies in the United States eight times, an accomplishment the company said is achieved by less than 1% of Inc. 5000 recipients. UKG also noted that Inova has received awards and recognition from G2, which publishes customer satisfaction rankings based on end-user feedback and reviews.
UKG said it is a global AI platform for HR, payroll, and workforce management, used by more than 80,000 organizations across 150 countries. With the Inova acquisition, UKG is aiming to deepen its direct presence in the SMB market while extending the service model Inova built for clients that want both modern HCM tools and outsourced support.
KEY QUOTES:
“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 by unlocking productive, efficient, and flexible workplace experiences, especially for SMBs with frontline teams. 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 to deliver best-in-class frontline employee experiences that drive exceptional customer value.”
Arlen Shenkman, President, Chief Financial Officer, UKG
“Joining UKG marks an exciting new chapter for Inova. It allows us to bring our service-driven approach to an expanding community of small and mid-sized businesses seeking a technology platform that simplifies how they schedule, manage, engage, and inspire their employees. Inova’s commitment to empathy, kindness, superior service, and innovative solutions has never been more achievable. 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.”
Joe Schweppe, CEO, Inova Payroll
