Julia Chirkova
Top 25 accounting and consulting firm Armanino has announced its acquisition of Sability, an Atlanta-based leader in human capital management (HCM) and workforce management (WFM) solutions. This strategic move, finalized on September 28, 2024, significantly expands Armanino’s service offerings, integrating Sability’s extensive expertise and client base into its broader advisory and technology practice. Financial terms of the transaction were not disclosed.
This acquisition marks Armanino’s fifth merger and acquisition (M&A) activity in 2024, underscoring the firm’s aggressive growth strategy. Earlier in the year, Armanino bolstered its capabilities through the addition of AppWrap, accounting firm MSTiller, Sales Tax Defense, and Step Up Consulting. These acquisitions are part of a larger strategic vision, further enabled by a minority investment secured in 2024 from Further Global Capital Management, a New York-based private equity firm focused on the financial services industry. This investment has provided Armanino with the capital and strategic support to pursue significant growth initiatives.
The integration of Sability is designed to create a formidable force in the advisory and technology landscape, capable of addressing a comprehensive suite of client needs. Armanino anticipates that the combined entity will offer unparalleled service across the entire spectrum of workforce and enterprise requirements. This includes expert guidance on HCM strategy, seamless UKG implementation and managed payroll services, alongside Armanino’s existing strengths in enterprise resource planning (ERP), customer relationship management (CRM), and CFO advisory services.
Sability brings to the table over three decades of specialized experience in HCM and WFM consulting. The firm boasts an impressive client roster of more than 3,500 organizations across diverse sectors such as healthcare, manufacturing, financial services, retail, and professional services. Complementing this extensive client base is a highly skilled team of over 100 consultants and managed services specialists, renowned for their deep industry knowledge and client-centric approach.
Under the leadership of Sability’s CEO Rob Leonard, Chief Strategy Officer James Shryock, and Senior Vice President of Business Development Kathy Kruse, the firm has garnered significant industry recognition. Sability has been honored as a two-time UKG Services Partner of the Year and a four-time Raven Intelligence Voice of the Customer Award winner, consistently achieving a perfect 5/5 customer satisfaction rating. The seamless integration of Sability’s leadership is solidified by Leonard, Shryock, and Kruse joining Armanino as partners, bringing their strategic vision and operational expertise to the expanded firm.
A Natural Synergy: Shared Values and Client-Centric Approach
Matt Armanino, CEO of Armanino Advisory, expressed strong enthusiasm for the acquisition, highlighting the cultural alignment and shared commitment to client success. "Sability’s culture, track record, and approach to client partnerships make this a natural fit for Armanino," stated Matt Armanino in a press release issued on September 28, 2024. He elaborated on the firm’s philosophy: "Their team doesn’t just implement software. They get inside a client’s business, ask the right questions, and deliver outcomes tied to real goals. That is exactly the kind of consulting philosophy Armanino is built on. By bringing Sability into our practice, we’re adding a best-in-class HCM and WFM team that shares our belief that technology should serve the business, not the other way around."
This sentiment was echoed by Rob Leonard, who emphasized the deliberate and thorough evaluation process that led to the decision. "We went through a deliberate process, and Armanino stood out at every stage: the people, the vision, and the shared values," Leonard commented. He further articulated the benefits of the merger for Sability’s clients and team: "Joining Armanino gives our team the platform and resources to do more for our clients, expanding beyond HCM into ERP, financial advisory, and beyond while staying true to the white-glove culture that has defined Sability for 30 years."
Expanding Horizons: Beyond the UKG Ecosystem
The acquisition of Sability is strategically positioned to leverage Armanino’s existing strengths while also enabling the combined firm to capitalize on emerging opportunities beyond the UKG ecosystem. Sability’s recent announcement of a strategic partnership with Darwinbox, an AI-native HCM platform, further diversifies its technological capabilities and market reach. Darwinbox, with over 1,000 global clients, is experiencing rapid expansion in North America, providing Sability and now Armanino with access to a cutting-edge platform and a growing client base. This move signifies Armanino’s commitment to staying at the forefront of technological advancements in the HCM space.
Kathy Kruse highlighted the enhanced value proposition for existing and future clients. "For years, clients have trusted us with their HCM needs—from consulting and implementations to managed services. And together with Armanino we can take these relationships to the next level," Kruse stated. She also addressed the evolving nature of the HCM industry: "The HCM industry is shifting fast, from legacy to future-state and from system setup to strategic advisory on business outcomes. Combining Sability’s depth in the HCM market with Armanino’s broader capabilities means we can go further for our clients and help them navigate more of the complexity they face every day."
Strategic Implications and Industry Outlook
The convergence of Sability and Armanino is expected to create a formidable player in the business transformation consulting market. The firm’s expanded service portfolio, encompassing HCM, WFM, ERP, CRM, and financial advisory, positions it to offer end-to-end solutions for businesses of all sizes. This integrated approach is particularly relevant in today’s complex business environment, where organizations are increasingly seeking holistic strategies to optimize operations, enhance employee experience, and drive sustainable growth.
The human capital management market has seen significant growth and evolution in recent years. According to recent industry reports, the global HCM market size was valued at approximately USD 21.3 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of over 9% from 2024 to 2030. This growth is driven by factors such as the increasing adoption of cloud-based HCM solutions, the demand for enhanced employee engagement and talent management, and the need for organizations to adapt to evolving workforce dynamics. Armanino’s strategic acquisition of Sability directly taps into this expanding market, positioning the firm to capture a significant share of this growth.
Furthermore, the increasing reliance on technology for business operations means that companies are looking for partners who can not only implement software but also provide strategic guidance on how to leverage technology for maximum business impact. Sability’s proven ability to deliver outcome-driven solutions, combined with Armanino’s extensive advisory capabilities, creates a powerful synergy that addresses this critical market need.
A Partner Ecosystem Perspective
The integration is also viewed favorably by key partners within the technology ecosystem. Savas Gunduz, Vice President of Strategic Alliances at UKG, commented on the significance of the merger. "The combination of Sability and Armanino brings together two organizations with a shared commitment to helping clients achieve better business outcomes through technology and transformation," Gunduz remarked. He added, "Sability’s deep HCM and UKG expertise, combined with Armanino’s broader advisory and technology capabilities, gives us a powerful platform to help organizations move beyond implementing systems to transforming how their businesses operate." This endorsement from a major technology partner like UKG highlights the strategic value and market potential of the combined entity.
The transaction was facilitated by expert advisory services. Canaccord Genuity served as the exclusive advisor to Sability throughout this significant transaction, underscoring the firm’s strategic approach to M&A and its commitment to maximizing value for its clients.
Looking Ahead: A Future of Integrated Solutions
The acquisition of Sability represents a pivotal moment for Armanino, marking a substantial expansion of its service offerings and market presence. By integrating Sability’s deep expertise in HCM and WFM with its own broad capabilities in ERP, CRM, and financial advisory, Armanino is well-positioned to become a leading provider of comprehensive business transformation solutions. This strategic move not only strengthens Armanino’s competitive position but also provides its clients with a more integrated and robust approach to navigating the complexities of modern business operations and achieving sustainable, technology-driven growth. The combined firm is poised to deliver unparalleled value to its clients by offering a holistic suite of services designed to address their most pressing challenges and unlock new opportunities for success.
