Owners
Saba Software — the software developer founded in 1997 for recruiting and distance learning of employees. Saba Software develops the systems of the class e-Learning. More than a half of the companies of the list of Fortune 100 selected its products for training and development of the employees, and the total number of users of applications and Saba services exceeds 11 million people (for 2014).
History
2020: Cornerstone OnDemand purchased Saba Software for $1.4 billion
At the end of February, 2020 Cornerstone OnDemand announced acquisition of Saba Software for $1.4 billion that for $1 billion, than the Vector Capital investment company paid for purchase of Saba in 2015.
After the closing of the transaction expected in the second quarter 2020 there will be a united company with the customer base which will include about 7 thousand organizations of the different sizes and more than 75 million users. Also at the new company the annual repeating revenue (ARR) at the level of $820 million and sales returns of subscriptions to software in $775 million is expected.
 | We believe that this transaction will allow us to construct strong business in the long term — the CEO of Cornerstone OnDemand Adam Miller says. — We have the general passion to development of people, and we will help thousands of the organizations and millions of people to eliminate a defect of skills around the world. |  |
According to Miller, the united company will receive more developers of software, and "experience in support of growth of community of clients is more than HR specialists". It will allow to strengthen partnership with content providers, system integrators and technology leaders around the world, he added.
Under the terms of the agreement, Cornerstone OnDemand will pay the transaction with money in the amount of $1.33 billion (about 95% of the total price) and also the actions for the amount of $65 million. For financing of this acquisition Cornerstone OnDemand opened in Morgan Stanley bank a credit line in $985 million. The head of Saba Phil Saunders will remain in the united company at a position of the provisional operating officer.[1]
Notes
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