At what enterprise value was SABA SOFTWARE acquired in 2020?

You can find the full valuation details of SABA SOFTWARE on mynth capital. The transaction's Enterprise Value is estimated to be in the range of 1b - 4b USD. By registering for free, you get access to complete and exact transaction details including enterprise value, revenue, and EBITDA. Additionally, our database shows that the TMT (Tech, Media, Telecom) industry currently tracks an average EBITDA multiple of 14.3x, providing a valuable benchmark for this transaction.

What was the EV/EBITDA of SABA SOFTWARE when it was acquired by CORNERSTONE ONDEMAND?

The exact EV/EBITDA multiple for SABA SOFTWARE is available on mynth capital. For comparison, the TMT (Tech, Media, Telecom) sector currently shows an average EBITDA multiple of 14.3x. Join our community for free to access full valuation data and industry trends.

When was SABA SOFTWARE acquired by CORNERSTONE ONDEMAND?

SABA SOFTWARE was acquired by CORNERSTONE ONDEMAND in 2020.

What is Enterprise Value (EV)?

Enterprise Value (EV) is a measure of a company's total value, often used as a more comprehensive alternative to equity market capitalization. EV includes in its calculation the market capitalization of a company but also short-term and long-term debt as well as any cash on the company's balance sheet.

What is the EV/EBITDA multiple and why is it used?

The EV/EBITDA multiple is a financial ratio that compares a company's Enterprise Value (EV) to its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). It is widely used in M&A and valuation because it allows for comparisons between companies with different capital structures and provides a clear view of operational profitability.

How is the data for the SABA SOFTWARE acquisition sourced and is it reliable?

Mynth data is contributed by a professional community of M&A and Private Equity experts. Each transaction, including the SABA SOFTWARE deal, is systematically cross-verified by our team using private deal documents and official sources. You can also find the official press release for this transaction here: https://www.cornerstoneondemand.com/company/news-room/press-releases/cornerstone-completes-acquisition-of-saba-software/

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Home Database TMT (Tech, Media, Telecom)SABA SOFTWARE

04/2020

SABA SOFTWARE acquired by CORNERSTONE ONDEMAND

UNITED STATES Software / ERP, HR & Finance EV 1b - 4b USD

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 LOGIN in 2020, is valued in this transaction at an EV/EBITDA multiple of LOGIN, a level to compare with the average currently observed in the TMT (Tech, Media, Telecom) sector (14.3x).

Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.

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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.

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List of similar M&A transactions (Date, Acquirer, Target, Country, Sector, Deal Context)
Date	Acquirer	Target	Country	Sector	Deal Context
10/2018	SABA SOFTWARE	LUMESSE EX STEPSTONE SOLUTIONS	GERMANY	Software	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
03/2015	VECTOR CAPITAL	SABA SOFTWARE	UNITED STATES	Software	US-based private equity firm Vector Capital, which manages over $2.5 billion in assets, has successfully closed the take-private acquisition of California-headquartered Saba Software. Formally approved by the target's shareholders, this delisting transaction perfectly aligns with the sponsor’s core investment thesis of executing complex transformational buyouts and revitalizing mature, established technology assets

REFERENCES

Valuation range: EV 1b - 4b USD

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: verified mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).

Press release: view release

Acquirer: cornerstone ondemand