BY Richard Summerfield
Private equity firm Clearlake Capital is to take cloud computing and management software provider Cornerstone OnDemand private in a deal worth $5.2bn.
Under the terms of the deal, Cornerstone shareholders will receive $57.50 per share in cash, a 15 percent premium over the stock’s closing price on the day before the deal was announced last week. The transaction is expected to close in the second half of 2021, subject to customary closing conditions, including the receipt of regulatory approvals and approval by a majority of Cornerstone stockholders. Certain stockholders, including Clearlake, representing 15.65 percent of the company’s outstanding shares, have agreed to vote their shares in favour of the transaction.
“Clearlake’s investment reflects their confidence in our talented people, the power of our SaaS solutions and our value proposition for our customers,” said Phil Saunders, chief executive of Cornerstone. “With this transaction, we plan to continue to pursue new software capabilities that advance our customers’ efforts to optimize workforce agility, transform skill development, deliver personalized, engaging growth experiences, and align their organizations around a shared definition of success. We’re thrilled to welcome Clearlake as a partner that appreciates the impact our SaaS solutions have on the lives of people at work and our customer-centric philosophy as we accelerate our innovation.”
“We have long admired Cornerstone’s leading talent management SaaS solutions and the Company’s mission to help customers modernize the learning and development experience for their employees,” said Behdad Eghbali, co-founder and managing partner at Clearlake. “We believe there is a significant opportunity to strategically position Cornerstone in the market as a buy-and-build platform and industry consolidator, and we look forward to partnering with the management team to drive value through both organic growth acceleration and inorganic transformation.”
Cornerstone also reported its second-quarter earnings last week, recording $214.3m in revenue, with 97 percent coming from subscriptions, and representing a 16.3 percent year-over-year increase. The company has more than 6000 customers and 75 million users, and its software is available in 180 countries and 50 languages. Cornerstone went public in 2011.
News: Clearlake Capital to take Cornerstone OnDemand private for $3.8 billion