Cloud-based HR software provider Cornerstone OnDemand (CSOD) has bought rival Saba Software for $1.395 billion (£1 billion) as industry consolidation continues.
Founded in 1991, California-based Cornerstone OnDemand delivers learning and employee management software through SaaS packages. The deal catapults it more firmly into competition with rivals Workday and possibly even SAP and Oracle.
The deal follows a tie-up between Ultimate Software and Kronos last week
Essentially Cornerstone helps firms to recruit and manage employers via automated forms and processes. Once on-boarded employees can be trained using Cornerstone software that is available in 42 languages.
Currently the firm has more than 3,600 clients across the globe equating 40 million users on the platform. In 2019 Cornerstone facilitated 600 million online classes to students in 187 countries, it claims. Its subscription revenue was $500 million last year.
Speaking to investors in an earnings call yesterday CEO Adam Miller commented on the acquisition that: “To provide a sense of the reach of this combination, our 2019 pro forma entity would have delivered nearly $820 million of ARR and $775 million in subscription revenue.”
Also based in California Saba Software has been operating in the career planning training sector since 1997. Its cloud-based intelligent talent management platform is used by more than 4,000 global customers.
Last month Atlas Hotels chose the firm to run its recruiting and training programmes which are rolled out to more than 1,200 employees across 49 hotels.
Atlas Hotels is implementing Saba TalentLink, which is an application tracking system that is currently used by more than 100 UK public sector organisations. These public bodies use the platform to establish hiring pipelines and distribute jobs. It is also use by UK agencies for;
- Job distribution including NHS jobs and Universal Job Match Career sites
- Chat bot’s,
- Configurable application processes & CV parsing Talent Pooling
- Match Manager Self Service including dedicated dashboards & online short-listing
Cornerstone CEO Adam Miller commented in a release that: “Saba and Cornerstone have always shared a passion for people development, and together we can accomplish great things. The additional depth of expertise and capability from Saba is an ideal complement to Cornerstone. With the combination, our product development team is expected to significantly expand, giving us the ability to develop faster, further increase competitive differentiation, and help millions of people around the world to overcome the skills divide.”