Clearlake Capital buys Cornerstone OnDemand for $ 5.2 billion
Clearlake Capital, a Santa Monica-based private equity firm, to buy all of Cornerstone’s outstanding shares at $ 57.50 a share, representing a 31% premium to the share price of the company on June 1, the companies announced on August 5.
“With this transaction, we plan to continue to seek new software capabilities that advance our clients’ efforts to optimize workforce agility, transform skills development, deliver personalized and engaging growth experiences. and align their organizations around a common definition of success, ”Phil Saunders, Cornerstone chief executive officer, said in a statement.
Once the transaction is completed, Cornerstone OnDemand will go private and be delisted from the public markets.
Richard Haddrill, Cornerstone co-chair, said the announcement follows a month-long “robust strategic review process” by Cornerstone choosing from among several interested funding partners.
The company said it would benefit from the “operating capabilities, capital support and in-depth industry expertise” offered by Clearlake.
The transaction, which was unanimously approved by Cornerstone’s board of directors, is expected to close in the second half of 2021, subject to regulatory clearance and majority approval of Cornerstone shareholders.
Shareholders, including Clearlake, representing nearly 16% of the company’s outstanding shares, have already agreed to vote in its favor.
“With a compelling suite of industry-leading solutions (software as a service) and a history of product innovation, we believe Cornerstone is well positioned in the growing and rapidly evolving talent management market,” Clearlake Partner Prashant Mehrotra and Principal Paul Huber said in a joint statement.
Founded in 1999, Cornerstone offers human resource management software to connect people and teams through artificial intelligence. Cornerstone has more than 6,000 customers and 75 million users, and its software is available in 180 countries and 50 languages. The company went public in 2011.
Also on August 5, Cornerstone announced that its second quarter revenue for 2021 grew by more than 16% year-on-year, to $ 214.3 million in 2021, from $ 184.4 million in 2020. .
Revenue from its software subscription service accounted for the bulk of that revenue at $ 206.8 million, up nearly 17% from the same period in 2020. The company recorded a diluted net loss per share of 1 cent, due to the loss of 19 cents per share the previous year.
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