Cornerstone to Acquire Saba
*Original article published by Business Wire · Date Feb 24, 2020, 04:00 pm
Strategic combination will enhance Cornerstone’s reach and accelerate innovation around how people learn and grow at work
SANTA MONICA, Calif.–(BUSINESS WIRE)–Cornerstone OnDemand, Inc. (NASDAQ:CSOD), a global leader in people development solutions, today announced it has entered into a definitive agreement to acquire Saba, a global leader in talent experience solutions and a portfolio company of Vector Capital. Saba has over 20 years of industry experience developing, delivering and supporting learning, performance and recruiting product solutions. The cash and stock transaction is valued at approximately $1.395 billion and has been unanimously approved by the boards of directors of both companies.
With the addition of Saba, Cornerstone will have an expanded reach and ability to help a larger, diverse group of clients realize the potential of their people with the right learning and development opportunities. The combined company will have more than 75 million users and serve approximately 7,000 organizations, of all sizes, around the globe.
The combined company will be well-positioned to deliver a highly differentiated portfolio of people development and talent experience software solutions by leveraging the existing product portfolio, as well as through accelerated product development enabled by a larger combined R&D team, greater financial resources, and a shared vision for the future.
“Today is a truly exciting day for our teams, our clients and our industry,” said Adam Miller, CEO and founder of Cornerstone. “Saba and Cornerstone have always shared a passion for people development, and together we can accomplish great things. The additional depth of expertise and capability from Saba is an ideal complement to Cornerstone. With the combination, our product development team is expected to significantly expand, giving us the ability to develop faster, further increase competitive differentiation, and help millions of people around the world to overcome the skills divide.”
“For over 20 years, Saba has been committed to helping clients around the world attract, develop and engage their people, and I am thrilled about this union because of the value it will bring to them,” said Phil Saunders, CEO and member of the Saba Board of Directors. “We see a natural fit between Saba and Cornerstone. We are aligned on mission and a view of where the industry is heading. Together, we will be better able to serve the needs of our clients and lead our industry into the future.”
Over the course of 2020, Cornerstone plans to integrate and optimize the collective portfolio of products with an unwavering commitment to client success. AlixPartners has been retained to help support the integration of the two organizations, focused on operational excellence and maximizing client value.
Centerview Partners, LLC and Morgan Stanley acted as financial advisors to Cornerstone in this transaction, and Cooley LLP acted as its legal advisor. Morgan Stanley Senior Funding, Inc., Bank of America, N.A., Credit Suisse AG, Deutsche Bank Securities Inc., and Jefferies Finance LLC have provided committed financing to Cornerstone for this transaction. William Blair & Company, L.L.C. acted as financial advisor to Saba in this transaction, and Paul Hastings LLP acted as its legal advisor.
The transaction is subject to the satisfaction of certain customary closing conditions and regulatory review, and it is expected to close in the second quarter of 2020. More information about this acquisition will be shared during Cornerstone’s earnings call today at 2:00 pm PST.
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