We’re almost 3 months into 2020 and so far, we’ve seen two major shakeups in the HR tech landscape. Last week, we reported on a merger between Kronos and Ultimate Software and just yesterday, news broke of a different tech acquisition. Out of all the 2020 HR predictions, no one saw these shakeups coming!
Cornerstone OnDemand, Inc., a people development solutions firm, recently announced it has entered into a definitive agreement to acquire Saba, a talent experience software provider. Saba has over 20 years of industry experience developing, delivering, and supporting learning, performance, and recruiting product solutions. This 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.
Adam Miller, CEO and founder of Cornerstone, says of the acquisition: “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,” says 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.”
How Does This Impact HR and L&D Professionals?
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 (L&D) opportunities. “By combining two industry pioneers, we will have the resources and financial flexibility to accelerate innovation for our clients and effectively respond to their evolving people development needs,” says Heidi Spirgi, Chief Strategy and Marketing Officer for Cornerstone—in an e-mail to HR Daily Advisor.
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 research and development team, greater financial resources, and a shared vision for 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.
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.