Cornerstone OnDemand, Inc. recently announced it has entered into a definitive agreement to acquire Saba, a talent experience solutions provider and portfolio company of Vector Capital. 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 gain an expanded reach and ability to assist a larger, more diverse group of users. The combined company will have more than 75 million users and serve approximately 7,000 organizations of all sizes around the globe.
This agreement comes on the heels of Cornerstone’s acquisition of Clustree. Clustree is a French technology company that developed an AI-powered skills engine and comprehensive skills ontology that is being utilized by global brands such as Carrefour and SNCF. Founded in 2014, Clustree developed a skills engine that uses machine learning and bias-free algorithms to help organizations match their workforce’s skills with specific job roles. Cornerstone agreed to acquire Clustree for approximately $18.5 million in an all-cash deal.
The combined company of Cornerstone and Saba will be positioned to deliver a differentiated portfolio of people development and talent experience software solutions by leveraging the existing product portfolio. Additionally, the company will have the ability to accelerate product development enabled by a larger combined R&D team, greater financial resources, and a shared vision for the future.
In a press statement, CEO and Founder of Cornerstone, Adam Miller said, “today is a truly exciting day for our teams, our clients, and our industry. 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.”
This 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.
Learn more about Cornerstone OnDemand.