HR software company Cornerstone OnDemand has announced it will acquire Saba in a deal worth almost $1.4 billion.
This is the second major HR tech deal in the space of a week, after Kronos announced its merger with Ultimate Software last Friday (21 February).
Cornerstone said the acquisition of Saba, an AI-driven talent management and learning technology company, would enable it to reach a larger and more diverse group of clients and “accelerate innovation around how people grow and learn at work”.
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It will also mean a larger combined research and development team, meaning products can be developed faster, the companies said.
The combined company will have more than 75 million users and serve approximately 7,000 organisations globally.
“Today is a truly exciting day for our teams, our clients and our industry,” said Adam Miller, CEO and founder of Cornerstone.
“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.”
Phil Saunders, CEO of Saba, said the coming together of the two organisations was a “natural fit”.
“We are aligned on mission and a view of where the industry is heading. Together, we will be better able to serve the needs of our clients and lead our industry into the future.”
Consulting firm AlixPartners will help support the integration of the two businesses, and over the course of this year, Cornerstone said it will “integrate and optimise” collective product portfolios.