Cornerstone OnDemand uses AI to run its management software.
Cornerstone OnDemand Inc., based in Santa Monica, a human resources management software company, has signed an agreement to be acquired by Clearlake Capital Group for $ 5.2 billion.
Clearlake Capital, a Santa Monica-based private equity firm, will purchase all of Cornerstone’s outstanding shares at $ 57.50 per share, a 31% premium on the company’s share price as of June 1, the companies said known on August 5th.
“With this transaction, we plan to continue developing new software capabilities that drive our customers’ efforts to optimize workforce agility, transform skill development, deliver personalized, engaging growth experiences, and align their businesses around a common definition of success,” Phil Saunders, Cornerstone chief executive, said in a statement.
When the transaction is complete, Cornerstone OnDemand will become private and will be removed from the public markets.
Richard Haddrill, Co-Chairman of Cornerstone, said the announcement follows a month-long “robust strategic review process” by Cornerstone as it selects from several interested financial partners.
The company said it would benefit from Clearlake’s “operational capabilities, capital backing and deep industry expertise”.
The transaction, unanimously approved by Cornerstone’s board of directors, is expected to close in the second half of 2021, subject to regulatory approval and approval by a majority of Cornerstone’s shareholders.
Shareholders, including Clearlake, who represent nearly 16% of the company’s outstanding shares, have already agreed to vote in favor.
“With a compelling suite of market-leading (Software-as-a-Service) solutions and years of product innovation, we believe Cornerstone is well positioned in the growing and rapidly evolving talent management market,” said Clearlake partner Prashant Mehrotra and Principal, Paul Huber in a joint statement.
Founded in 1999, Cornerstone provides HR management software to connect people and teams using artificial intelligence. Cornerstone has more than 6,000 customers and 75 million users, and its software is available in 180 countries and 50 languages. In 2011 the company went public.
Also on Aug. 5, Cornerstone announced that revenue in the second quarter of 2021 was up more than 16% year over year to $ 214.3 million in 2021 from $ 184.4 million in 2020.
Software subscription service revenue accounted for the majority of that revenue at $ 206.8 million, nearly 17% more than the same period in 2020. The company had a diluted net loss per share of 1 cent from the loss of the Previous year of 19 cents per share.
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