Clearlake Capital-Backed Cornerstone Enters Definitive Agreement to Acquire SumTotal, a Skillsoft Company

By AIT News Desk On Jun 13, 2022

Strategic combination will further expand Cornerstone’s capabilities, enhance reach of employee-centric innovation, and broaden vertical expertise in highly regulated markets

Cornerstone OnDemand, Inc., a leader in adaptive cloud-based HR software solutions, backed by Clearlake Capital Group, L.P. (together with its affiliates, “Clearlake”), announced it has entered into a definitive agreement with Skillsoft, to acquire SumTotal, a provider of learning and human capital management software-as-a-service (“SaaS”) for customers in highly regulated and complex industries.

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“The acquisition of SumTotal continues to underscore the fundamental growth thesis we see for Cornerstone, as a leading talent management SaaS platform provider”

With the addition of SumTotal, Cornerstone will be positioned to help a larger, more diverse group of customers transform the way they identify and develop the skills of the future, engage and develop their people, and optimize talent and business agility. The combined company will be positioned to deliver a differentiated, expanded portfolio of learning, talent, and people growth solutions with broader vertical expertise, greater financial resources, and a shared vision for the future of work.

This announcement follows Cornerstone’s recent acquisition of EdCast, which has fueled the company’s strategy to create an open platform for people development, growth, and mobility.

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“Today is an exciting day for our teams, our customers, and our industry,” said Himanshu Palsule, CEO of Cornerstone. “SumTotal and Cornerstone share a passion for people growth and development. The additional depth of expertise from SumTotal, particularly in high-consequence vertical markets, is an ideal complement to Cornerstone. With Cornerstone’s broad portfolio and agnostic approach to innovation, we expect to offer SumTotal customers even more options for extensibility and growth. Together, we will continue our mission in helping organizations and their people to develop future-proof skills, flexibly grow their careers, and achieve shared success.”

“The acquisition of SumTotal continues to underscore the fundamental growth thesis we see for Cornerstone, as a leading talent management SaaS platform provider,” said Prashant Mehrotra, Partner, and Paul Huber, Managing Director, at Clearlake. “We are excited to continue building on Cornerstone’s industry reputation for providing innovative software solutions to our customers through acquisitions and organic initiatives. This acquisition represents an incredible opportunity for Cornerstone to deliver more value to customers and employees alike, and combined with our O.P.S.^® approach, should drive accelerated growth and value for the business.”

Cornerstone will continue to advance its products, technologies, and services with an unwavering commitment to customer success, and the most flexible options to support the skills transformation, people experience and talent management priorities of an expanded global customer base.

Deal details at a glance

The transaction is expected to close in the second half of 2022, subject to regulatory approvals and other customary closing conditions.
Centerview Partners LLC is serving as financial advisor to Cornerstone and Clearlake, and Sidley Austin LLP is serving as legal counsel.
PJT Partners served as the exclusive financial advisor to Skillsoft, and Weil, Gotshal & Manges LLP served as the Company’s legal counsel.

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