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Cornerstone OnDemand makes a definitive acquisition agreement with Saba valuing almost 1.395 Billion
Fremont, CA: Cornerstone OnDemand, Inc., a people development solutions subject expert throughout the world, has signed a definitive acquisition agreement with Saba, a globally renowned talent experience solutions and a portfolio company of Vector Capital. The cash and stock transactions of the deal are valued to be approximately $1.395 billion and are unanimously approved by both the companies’ board of directors.
Saba has more than 20 years of experience in the industry. It has been developing, delivering, and supporting learning, performance, and recruiting product solutions. Saba for Cornerstone will help in deepening its reach and the ability to cater to a larger, more diverse group of clients to realize the potential with the apt learning and development opportunities. The combined users of the company will account to more than 75 million and serve almost 7000 organizations of all sizes, worldwide.
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The combined company will deliver a highly customized portfolio of people development and talent experience software solutions. It will utilize the already existing portfolio of the client, along with accelerated product development, now availed by a larger, combined R&D team, greater financial resources, and a shared vision of 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, added he.”
“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.”
Cornerstone’s plans for 2020 lie mostly to integrate and optimize the collective portfolio of the product and offerings with a constant commitment to the success of the client. The company will refocus its attention on operational excellence and increasing client value.
Centerview Partners, LLC, and Morgan Stanley led this deal as the financial advisors to Cornerstone in this transaction and Cooley LLP as its legal advisor. Morgan Stanley Senior Funding, Inc., Bank of America, NA, Credit Suisse AG, Deutsche Bank Securities Inc., and Jefferies Finance LLC have provided committed financing to Cornerstone for this deal. William Blair & Company, LLC acted as financial advisor to Saba in this transaction, and Paul Hastings LLP acted as its legal advisor.
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