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04/2020

SABA SOFTWARE acquired by CORNERSTONE ONDEMAND

UNITED STATES Software / ERP, HR & Finance EV $1–10bn

Context

California-based cloud human capital management provider Cornerstone OnDemand has successfully completed the acquisition of its competitor Saba Software. Prior to the transaction, the target was held as a portfolio company by private equity sponsor Vector Capital. The acquisition, which secured approval from the boards of directors of both companies and was executed through a mix of cash and stock, unites two prominent players in the HR software sector. For the buyer, led by CEO and co-founder Adam Miller, this strategic consolidation follows closely on the heels of its recent buyout of French startup Clustree. The newly combined entity effectively doubles its client portfolio, serving a total of 7,000 corporate organizations and 75 million users globally.

In the past, the company underwent an LBO led by Vector Capital in 2015, and continued an active consolidation strategy by notably acquiring Lumesse Ex Stepstone Solutions (2018).

SABA SOFTWARE, which reported an EBITDA margin of [members only] in 2020, 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).

-> Deep-dive in TMT (Tech, Media, Telecom) market trends

Target

Founded in 1997 and headquartered in the United States, Saba Software is a prominent technology provider specializing in the development of human resource management software. The company designs highly integrated and innovative platforms tailored to address a comprehensive suite of functional needs, primarily focusing on training, performance management, and succession planning. Through its highly customizable and flexible solutions, Saba Software empowers its clients to effectively navigate a constantly evolving business environment while significantly improving workforce efficiency and overall organizational productivity. Backed by its longstanding industry expertise and a dedicated team of professionals, the company has established a solid reputation as a trusted, market-leading HR software partner. Its solutions actively support a diverse, blue-chip client base that comprises large private enterprises and major public institutions, most notably including the US Army, IBM, and financial services firm Fiserv.

Ent. Value

$1–10bn

Equity Value

[members only]

Multiples

EV / Revenue

[members only]

EV / EBITDA

[members only]

EV / EBIT

[members only]

Historical Financials (USD)

Year
Rev
EBITDA
EBIT
2020
[members only]
[members only]
[members only]
2019
[members only]
[members only]
[members only]

Other operations with SABA SOFTWARE

Other operations with SABA SOFTWARE

List of similar M&A transactions (Date, Acquirer, Target, Country, Sub-sector)
DateAcquirerTargetCountrySector
10/2018SABA SOFTWARELUMESSE EX STEPSTONE SOLUTIONSGERMANYERP, HR & Finance
03/2015VECTOR CAPITALSABA SOFTWAREUNITED STATESERP, HR & Finance

REFERENCES

Valuation range: EV $1–10bn

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of SABA SOFTWARE by CORNERSTONE ONDEMAND are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Press release: view release

Acquirer: cornerstone ondemand