LUMESSE EX STEPSTONE SOLUTIONS acquired by SABA SOFTWARE
Context
Private equity firm Hg (formerly HgCapital) has reached a definitive agreement to divest the HR software company Lumesse to trade buyer Saba Software, which is currently backed by private equity sponsor Vector Capital. The competitive sale process was run by US investment bank Jefferies Group LLC. Scheduled to successfully close by the end of 2018, the transaction brings to an end an eight-year holding period for Hg, which originally backed the platform through its £1.87bn HgCapital 6 fund. The integration of Lumesse into Saba Software—a company maintaining dual headquarters in Ireland and the US—will create a highly consolidated industry entity boasting a combined roster of 4,700 clients. For the seller, the exit concludes an investment cycle that saw proactive buy-and-build strategies, including the bolt-on acquisition of educational software business Edvantage Group. The divestiture successfully realizes an asset that had historically underperformed but registered notable operational progress over the previous year.
It is worth noting that the fund Hg Capital took control of Lumesse Ex Stepstone Solutions through an LBO in 2010.
LUMESSE EX STEPSTONE SOLUTIONS, which reported an EBITDA margin of [members only] in 2018, is valued in this transaction at an EV/EBITDA multiple of [members only], to compare with the average currently observed in the TMT (Tech, Media, Telecom) sector (14.7x).
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Target
Lumesse (formerly StepStone Solutions) is a premier European SaaS vendor specializing in advanced talent acquisition and talent management software. Recognized as a clear leader within its sector, the company strategically supports a highly diversified global base of over 1,400 customers. With a dedicated workforce of approximately 450 employees operating across 17 countries, the business combines a robust historical footprint in Europe with accelerating international momentum, particularly across the US and Asia-Pacific markets.
Ent. Value
$1–100M
Equity Value
[members only]
Multiples
EV / Revenue
[members only]
EV / EBITDA
[members only]
EV / EBIT
[members only]
Historical Financials (USD)
Other operations with LUMESSE EX STEPSTONE SOLUTIONS
Other operations with LUMESSE EX STEPSTONE SOLUTIONS
| Date | Acquirer | Target | Country | Sector |
|---|---|---|---|---|
| 03/2010 | HG CAPITAL | LUMESSE EX STEPSTONE SOLUTIONS | GERMANY | ERP, HR & Finance |
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Other operations with SABA SOFTWARE
| Date | Acquirer | Target | Country | Sector |
|---|---|---|---|---|
| 04/2020 | CORNERSTONE ONDEMAND | SABA SOFTWARE | UNITED STATES | ERP, HR & Finance |
| 03/2015 | VECTOR CAPITAL | SABA SOFTWARE | UNITED STATES | ERP, HR & Finance |
REFERENCES
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Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.