CORNERSTONE ONDEMAND acquired by CLEARLAKE CAPITAL / VECTOR CAPITAL

Private equity firm Clearlake Capital Group has entered into a definitive agreement to acquire the California-based talent management software provider Cornerstone OnDemand. Unanimously approved by the target's Board of Directors, the transaction will result in the company becoming privately held, officially delisting its shares from public markets. As part of this take-private buyout, technology-focused sponsor Vector Capital will also execute a strategic minority equity investment at closing. The sell-side process was managed by financial advisors Qatalyst Partners and Centerview Partners, while the acquirer was supported by a broad banking syndicate that included Morgan Stanley, Rothschild & Co., J.P. Morgan, and Goldman Sachs. Transitioning to a privately held structure will provide Cornerstone with enhanced strategic agility and the capital backing required to expand its market-leading HR SaaS capabilities. Clearlake intends to leverage its proprietary O.P.S.® operational framework to partner with management, accelerating organic execution while simultaneously positioning the company as an aggressive industry consolidator through inorganic transformation. The involvement of Vector Capital (who held deep historical ties to the platform through its prior ownership of Saba Software) adds significant domain expertise to support Cornerstone's evolution into the pre-eminent next-generation talent management ecosystem.

Previously, Cornerstone Ondemand had completed the acquisition of Saba Software in 2020 as part of its consolidation strategy.