Vector Capital Completes Sale of Saba Software to Cornerstone OnDemand
Vector Capital, a leading private equity firm specializing in transformational investments in established technology businesses, announced the successful sale of Saba Software, a leading provider of cloud-based talent management software, to Cornerstone OnDemand, for approximately $1.295 billion.
Founded in 1997 as a pioneer in learning management software, Saba Software enables human resources departments to effectively manage all aspects of acquiring, developing, and retaining their talent through a single cloud-based software. Saba’s HR suite covers the entire lifecycle of an employee from recruiting, training, reviews, performance management, and succession planning.
HR Technology News: HireVue Appoints Ilene Landon as Senior Vice President of Professional Services and Delivery
Vector Capital initially invested in the already-delisted Saba through its Credit Strategy in 2013, which culminated in a take private in 2015 as the company faced SEC-imposed deregistration. Since acquiring Saba, Vector Capital worked closely with Saba’s management team to develop and execute a long-term strategic plan focused on expanding Saba’s product offering and increasing recurring revenue. Specifically, Saba completed two transformative acquisitions – Halogen in 2017 and Lumesse in 2018 – which added performance and recruiting capabilities to Saba’s market leading learning platform and more than doubled its recurring SaaS revenue. Additionally, Saba’s financial performance and scale materially improved with significant increases in overall revenue and EBITDA under Vector Capital’s ownership.
HR Technology Interview: TecHR Interview with Jesse Wolfersberger, Chief Data Officer at Maritz Motivation Solutions
David Fishman, a Managing Director at Vector Capital, said, “Saba is both a terrific outcome and an excellent example of Vector’s strategy at work. We started with a distressed credit investment, which ultimately led to a full buyout. We retained a terrific product team, brought in some of our best executives, and expanded Saba’s platform and geographic breadth with two material acquisitions. We thank CEO Phil Saunders, CFO Pete Low, CTO Srini Ogireddy, and the entire Saba team for their tremendous contributions and partnership.”
HR Technology News Are You Prepared to Run Your Office Remotely?