Cornerstone OnDemand Signs Agreement to Acquire Sonar Limited

Cornerstone OnDemand

today announced that the company has entered into an agreement to acquire privately held Sonar Limited. Based in Auckland, New Zealand, Sonar6 is a leading provider of cloud-based talent management solutions serving small businesses globally. The acquisition will combine two of the talent management industry's most innovative providers and allows Cornerstone to strengthen its ability to serve clients of all sizes. Additionally, Cornerstone expects that the acquisition will accelerate the company's momentum in the small business market. Following the acquisition, Sonar6 will be rebranded as a Cornerstone solution specifically for small businesses. The companies will not integrate their products, and Sonar6 solutions will remain separate to preserve Cornerstone's 100 percent organically developed solution for enterprise and mid-market clients. Under the terms of the share purchase agreement and subject to certain purchase price adjustments described therein, Cornerstone will pay approximately $13 million in cash and $1 million in equity for Sonar6 and enter into employment agreements with certain employees. Cornerstone does not expect that this transaction will have a material impact on its non-GAAP financial metrics in 2012. Cornerstone management plans to discuss additional details regarding this transaction on the company's first quarter 2012 earnings conference call.