SABA SOFTWARE acquired by VECTOR CAPITAL
Context
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. By partnering closely with the existing management team, Vector Capital is deploying strategic capital to support the next expansion phase of this legacy SaaS HR platform, ensuring a seamless operational transition and sustained excellence for all stakeholders. Vector Capital’s mandate is clear: to reinvigorate Saba’s core technology architecture, maximize client retention, and accelerate value creation across a massive installed base that already encompasses over 2,200 corporate customers and 31 million users across 195 countries. In lockstep with management, the sponsor intends to heavily leverage cutting-edge capabilities (such as the platform's proprietary machine learning) to further enhance Saba's intelligent talent management offering. To firmly consolidate Saba's market share and competitive moat, Vector Capital will execute an aggressive, hybrid value-creation playbook that pairs renewed organic top-line momentum with a disciplined, highly targeted buy-and-build M&A program.
SABA SOFTWARE, which reported an EBITDA margin of LOGIN in 2015, 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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Historical Financials (USD)
Other operations with SABA SOFTWARE
| Date | Acquirer | Target | Country | Sector | Deal Context |
|---|---|---|---|---|---|
| 04/2020 | CORNERSTONE ONDEMAND | SABA SOFTWARE | UNITED STATES | Software | 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 |
| 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 |
REFERENCES
Valuation range: EV 300M - 700M USD
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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: vector capital