Aug 5 (Reuters) - Cornerstone OnDemand Inc said on
Thursday private equity firm Clearlake Capital Group LP would
take the cloud computing and management software provider
private for about $3.8 billion, the latest in a series of tech
take-private deals this year.
Cornerstone shareholders will get $57.50 per share in cash,
a 15% premium over the stock's last close.
Enterprise software companies have seen a surge in demand
since last year as more businesses use their services to meet
demands of the switch to pandemic-induced work from home.
Cornerstone, which helps companies to recruit, train, and
manage their employees, counts Walgreens and Starwood
Hotels & Resorts as its customers.
The deal, which is expected to close in the second half of
this year, has an enterprise value of about $5.2 billion,
representing a 5.9 times multiple on the next 12-month revenue.
The company also reported second-quarter earnings on
Thursday, recording $214.3 million in revenue, with 97% of it
coming from subscriptions, and representing a 16.3%
Cornerstone OnDemand plans to accelerate its growth through
investment in products as well as consolidating other human
resource software companies, according to a source familiar with
The deal came after the company hired Qatalyst and
Centerview to explore strategic options. Morgan Stanley,
Rothschild & Co, J.P. Morgan, Goldman Sachs, BofA Securities,
Barclays, Jefferies and William Blair advised Clearlake.
(Reporting by Akanksha Rana in Bengaluru and Krystal Hu in New
York; Editing by Maju Samuel and Steve Orlofsky)