Clearlake Capital-Backed Cornerstone Enters Definitive Agreement to Acquire EdCast
- Acquisition is a strong fit with Cornerstone’s strategy to transform the learning software market landscape and accelerate Cornerstone’s vision to innovate and reimagine the growth experience for people at work
Cornerstone OnDemand, a leader in adaptive cloud-based HR software solutions, announced it has entered into a definitive agreement to acquire EdCast, a learning experience platform (“LXP”) software provider. Terms of the transaction, which is expected to close in Q2 2022, were not disclosed.
The Company believes the combination aligns well with Cornerstone’s strategy of transforming the learning software market. Cornerstone, an industry leader in learning and talent software-as-a-service (“SaaS”) solutions, and EdCast, an LXP software provider, expect to reimagine the people growth experience to create the next generation technology blueprint for the future-ready workforce. Together Cornerstone and EdCast will accelerate value for customers with innovations in experiential learning, content and skill building, and a unified and scalable talent infrastructure designed to transform learning into a connected engine of growth, agility and mobility for people and business.
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“We are thrilled at the prospect of bringing such an incredible team of learning experts together to revolutionize the learning market,” said Himanshu Palsule, CEO of Cornerstone. “Today’s fragmented HR technology landscape is ripe for reinvention as organizations seek new ways to unify people and business in areas most critical to growth – workforce engagement, talent retention, skills transformation, and career mobility. Cornerstone and EdCast have the potential to deliver a next-generation learning and talent infrastructure, rapidly innovate a connected people growth experience, and create a new blueprint for the way organizations and their people grow and thrive, together.”
EdCast is a provider of LXP software solutions, known for its expertise and innovation in aggregating, curating, targeting, and delivering personalized and contextual learning to users. EdCast’s platform is powered by a skills engine and a content marketplace, with an experience delivered in the flow of work via an AI-powered knowledge cloud.
“The combination of Cornerstone and EdCast is poised to accelerate the pace of innovation in the market,” said Karl Mehta, CEO of EdCast. “Together we will transform the way our customers develop the skills of the future, retain and grow their people, improve agility, and unify and scale learning and talent infrastructure in lockstep with business needs.”
This acquisition is the first planned transaction by Cornerstone since joining the Clearlake portfolio in late 2021. With its strategic foundation established, significant positive momentum across the business, and optimal flexibility as a private company, Cornerstone is now poised to accelerate its growth and re-shape the future of the market. Clearlake and Cornerstone plan to continue accelerating the company’s value through inorganic and organic growth, transformation and market consolidation.
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“The acquisition of EdCast underscores the fundamental growth thesis we see for Cornerstone in the market 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 our customers and their employees and combined with our O.P.S.® approach, should drive accelerated growth and value for the business.”
Deal Details
- The transaction is expected to close in the second quarter of 2022
- The acquisition of EdCast is the first planned transaction by Cornerstone since becoming a private company and part of the Clearlake Capital portfolio
- Macquarie Capital (USA) Inc. served as financial advisor to EdCast
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