TALENT MANAGEMENT

Clearlake Capital Completes Acquisition of Cornerstone OnDemand

Clearlake Capital Group | October 15, 2021

Clearlake Capital Group, L.P. (together with its affiliates "Clearlake") announced that it has completed its acquisition of Cornerstone OnDemand, Inc. (NASDAQ: CSOD, "Cornerstone OnDemand", or "Cornerstone"), a global leader in talent management software. The acquisition was previously announced on August 5, 2021, and was approved by Cornerstone OnDemand shareholders on October 12, 2021. Under the terms of the agreement, Clearlake has acquired the outstanding shares of Cornerstone common stock for $57.50 per share in cash. As a result of the transaction, Cornerstone is now a privately held company and shares of Cornerstone common stock are no longer listed on the public market.

The acquisition combines Cornerstone's product and industry leadership with Clearlake's proven software investment experience and operational improvement approach, O.P.S.®, to strengthen and accelerate the company's next phase of growth and innovation.

"Clearlake's investment in Cornerstone is an exciting and important step for our company and our customers, Clearlake has shown immense confidence in our talented team and the direction we are headed. With their financial sponsorship to invest behind growth, we will have even greater opportunity to accelerate innovation and advance our customers' efforts to ensure their organizations – and people – are future-ready."

- Phil Saunders, CEO, Cornerstone.

"Cornerstone has done a tremendous job providing best-in-class software solutions to a large base of global customers, We are thrilled to partner with the company's talented employees and believe that Cornerstone is well positioned to continue building on its strong leadership position for talent management SaaS solutions, both organically and through accelerated add-on acquisition activity."

- Behdad Eghbali, Co-Founder and Managing Partner, and Prashant Mehrotra, Partner, of Clearlake.

Advisors
Qatalyst Partners and Centerview Partners LLC served as financial advisors to Cornerstone, and Cooley LLP served as legal counsel. Morgan Stanley, Rothschild & Co., J.P. Morgan, Goldman Sachs, BoA Securities, Barclays, Jefferies and William Blair served as financial advisors to Clearlake.  Sidley Austin LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to Clearlake in the connection with the acquisition and debt financing. J.P. Morgan, BoA Securities, Ares, Golub, Antares, Barclays, Blue Owl, BMO Capital Markets, BNP Paribas, Credit Suisse, Goldman Sachs and Jefferies provided debt financing for the transaction.

About Cornerstone
Cornerstone powers the future-ready workforce with adaptive HR software designed to unite people, teams, technology and business to inspire a work environment of growth, agility and success for all. With an AI-powered and skills-forward system designed for the contemporary workforce, we help organizations modernize their learning and development experience, deliver the most relevant content from anywhere, accelerate talent and career mobility and establish skills as the universal language of growth and success across their business. Cornerstone serves over 6,000 customers and 75M users and is available in 180 countries and 50 languages.

About Clearlake
Founded in 2006, Clearlake Capital Group, L.P. is an investment firm, operating integrated businesses across private equity, credit, and other related strategies. With a sector-focused approach, the firm seeks to partner with world class management teams by providing patient, long term capital to dynamic businesses that can benefit from Clearlake's operational improvement approach, O.P.S.® The firm's core target sectors are technology, industrials, and consumer. Clearlake currently has over $50 billion of assets under management, and its senior investment principals have led or co-led over 300 investments. The firm has offices in Santa Monica and Dallas.

Spotlight

Two organizations implement nearly identical employee training initiatives. Company A quickly sees improved metrics & long-term financial results. Company B sees little change – and is back to square one a year later. Why?

While development is critical to engagement, performance, and succession, its overall effectiveness is determined by the quality of an organization’s leaders.


Other News
TALENT MANAGEMENT

Successful Early Stage HR Tech Founder & High Growth Sales Leader Joins PredictiveHire to Lead Expansion into North America

PredictiveHire | January 06, 2022

PredictiveHire, creator of the world's first Smart Interviewer, today announced Nick Bosch is joining the company as its Head of Growth, North America. In this new role Bosch will lead sales, partnerships and customer success within North America. The appointment of Bosch is off the back of a huge year for PredictiveHire, with the Australian-headquartered company growing by 300% in the last 12 months, with 25% of that growth coming from the US and EMEA. They have helped over 1.2million candidates apply for jobs across 47 countries. "There is simply no other interview-product like ours in the US and given the current intense need for talent at all levels there we're truly excited to show what our Smart Interviewer, Phai, is capable of, Bosch was the perfect person to help lead the charge into the US market with his background in HR Tech, as both a co-founder of Reschedge, overseeing its rapid growth leading to the acquisition by HireVue, and having been a key sales leader at Beamery. " -PredictiveHire CEO Barb Hyman Bosch said he signed on to the role as soon as he saw the product and spoke to customers about the impact it was having in their organizations. "This is the simplest yet most sophisticated way to deliver quality candidates to companies - while saving time and money. Companies short of talent don't need to sacrifice quality if they use Phai. I'm looking forward to being part of PredictiveHire transforming how talent decisions are made in the US and Canada." - Bosch Hyman said PredictiveHire addressed three big challenges facing many US companies right now - it creates a fair hiring experience helping companies deliver on Diversity, Equity and Inclusion ; it lives up to the market expectations of a candidate-centric approach; and it solves for the need-for-speed in hiring. About PredictiveHire PredictiveHire's mission is to help companies unlock and engage talent at scale. Aiming to deliver the world's Smartest Interviewer, Phai, powered by the world's largest source of 1st party proprietary text data and advanced Natural Language Processing, we turn simple text conversations into unprecedented talent intelligence enabling organisations. We interrupt hiring bias at scale, get to the right talent fast and give every candidate an experience they love.

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HR STRATEGY

Littlejohn Capital Announces Acquisition of Alto Healthcare Staffing Buoyed by Industry Tailwinds, Alto Poised for Geographic Expansion

Littlejohn Capital | January 11, 2022

LJC Investments V, LLC, an investment vehicle controlled by Littlejohn Capital, LLC ("Littlejohn Capital"), today announced the acquisition of Alto Healthcare Staffing ("Alto"), a diversified healthcare staffing firm. Alto was established in 2003 in line with the personal values and mission of Founder and RN Leslie Kahn. Alto's three key business lines include providing clinical temporary staffing primarily for nursing homes and long-term care facilities on a per diem or short-term contract basis; travel nurses primarily to hospitals; and medical assistants to doctors' offices. Alto is headquartered in Dayton, OH. "Littlejohn took the time to really get to know our business and our management team, and we were greatly impressed with their relevant experience in the staffing sector. With their partnership, we believe we can grow while remaining true to our mission. Littlejohn will provide valuable resources to help us accelerate our growth and build on our relationships with healthcare facilities, hospitals and doctors. Our goal is to provide industry leading services to more customers and provide the right healthcare professionals to patients wherever they are needed most." -Leslie Kahn, President of Alto "Over the past several months, we have gotten to know Leslie and her team and were very impressed by the company she has built and the differentiated approach Alto's talented healthcare professionals provide to long-standing clients. The healthcare staffing industry is experiencing dynamic growth, and Alto's services have become a more viable and easily accessible option for healthcare facilities across the country. We look forward to working with Leslie to help achieve her vision of expanding Alto's compassionate care and leveraging the experience from our successful investment in Hospitality Staffing Solutions as we further diversify the business geographically." -Angus C. Littlejohn III, President of Littlejohn Capital Staffing industry veteran Timothy McPherson, who served as CEO of former Littlejohn Capital portfolio company Hospitality Staffing Solutions, will join the Alto Board of Managers, in addition to Mr. Littlejohn III and Littlejohn Capital Chairman, Angus Littlejohn, Jr. UHY Corporate Finance served as financial adviser to Alto and Morrison Cohen LLP provided legal counsel to Littlejohn Capital on the transaction. About Littlejohn Capital Littlejohn Capital is the family office of Angus C. Littlejohn Jr., co-founder of Littlejohn & Co., where he currently serves as Chairman. The platform seeks to make control investments in small to mid-sized private companies that are undergoing strategic, operational or generational transition.

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RECRUITMENT & RETENTION

USO Announces Strategic Relationship with EY to Expand Career Opportunities for the Military Community

EY | February 07, 2022

The United Service Organizations (USO) and Ernst & Young LLP (EY) are joining forces to support professional development within the military community. During a three-year strategic relationship, the USO and EY will create career and mentorship opportunities for service members and their spouses. "The USO and EY share a commitment to helping others become the best versions of themselves. This relationship will allow thousands of our brave troops and their spouses to plan rewarding professional lives that leverage their unique skillsets, EY representatives already sit on six USO advisory boards throughout the United States, and we are looking forward to even more cross-organization engagement in the future." -USO CEO and President J.D. Crouch II. A $1.5M donation and pro bono services from EY will support numerous USO initiatives between Jan. 2022 and Dec. 2024. These include the USO Pathfinder® Transition Program, which connects the military community to employment, education, financial readiness, and mentorship opportunities. It is a crucial resource for the 200,000-plus service members and 650,000-plus military spouses who experience a major life transition each year. The strategic relationship will also strengthen EY's hiring initiatives while raising awareness of the USO's important role in military career development. EY employees will have a chance to meaningfully engage with service members through mentorship, board positions, and storytelling. Each interaction will help bridge the military-civilian divide and give more than thanks to those in uniform. About the USO: The USO strengthens America's military service members by keeping them connected to family, home, and country, throughout their service to the nation. At hundreds of locations worldwide, we are united in our commitment to connect our service members and their families through countless acts of caring, comfort, and support. The USO is a private nonprofit organization, not a government agency. Our programs, services and entertainment tours are made possible by the American people, the support of our corporate partners, and the dedication of our volunteers and staff. To join us in this important mission and learn more about the USO, please visit USO.org or follow us on Facebook, Twitter, and Instagram. About EY: EY exists to build a better working world, helping create long-term value for clients, people and society and build trust in the capital markets. Enabled by data and technology, diverse EY teams in over 150 countries provide trust through assurance and help clients grow, transform and operate. Working across assurance, consulting, law, strategy, tax and transactions, EY teams ask better questions to find new answers for the complex issues facing our world today. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

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HR STRATEGY

Industry Leading HR and Payroll Company ADP Works with LightHouse to Enhance Accessibility of Products to Blind Users

LightHouse for the Blind and Visually Impaired of San Francisco | December 18, 2021

The LightHouse for the Blind and Visually Impaired of San Francisco and blind LightHouse staff members reached an agreement with the Professional Employer Organization ADP TotalSource® to enhance the accessibility and usability of the ADP Workforce Now® solution to LightHouse staff who are blind or have low vision and use screen-reading software to access digital content. LightHouse, a 120-year-old nonprofit which supports and promotes the independence, equality, and self-reliance of people who are blind or have low vision in northern California, uses ADP TotalSource products for its human resources and payroll needs. ADP is working with a leading web accessibility expert to help enhance the accessibility of its Workforce Now solution for the blind or those who have low vision. The group will audit the ADP Workforce Now web and mobile applications to help ensure they conform to the World Wide Web Consortium's Web Content Accessibility Guidelines (WCAG), version 2.1, Level AA. ADP is also rolling out an enhanced policy that reaffirms its commitment to accessibility and outlines its procedures for incorporating accessibility into the development and testing lifecycle for its solutions. ADP will also provide enhanced training to ADP TotalSource associates to ensure a deeper level of service that will help them provide greater technical assistance to individuals who use screen readers to access ADP Workforce Now. "This agreement is a major commitment by ADP TotalSource to building an accessible workplace environment for LightHouse's blind employees, managers and executives to participate efficiently alongside their sighted peers. We expect that this commitment represents an important step towards bringing an accessible workplace environment to any blind employee in the vast workforce ADP TotalSource serves." -LightHouse's CEO, Bryan Bashin "I am pleased that this work will result in my having greater access to essential human resources and payroll functionality, and I am excited that many other blind and visually impaired users of ADP's services will also benefit from these changes," - Frank Welte, Senior Accessible Media and Braille Specialist at LightHouse. About LightHouse for the Blind and Visually Impaired of San Francisco Headquartered in San Francisco, California, LightHouse for the Blind and Visually Impaired provides education, training, advocacy, and community for blind individuals in California and around the world. Founded and based in San Francisco since 1902, the LightHouse is one of the largest and most established comprehensive blindness organizations in North America, with a wide variety of programs to suit a wide variety of needs, as well as a rich network of blindness advocates and professionals. Visit www.lighthouse-sf.org for more information. About Disability Rights Advocates DRA is one of the leading non-profit disability rights legal centers in the nation. With offices in Berkeley and New York City, DRA's mission is to advance equal rights and opportunities for people with all types of disabilities nationwide. To advance that mission, DRA regularly advocates for greater access to modern technology. DRA has negotiated access improvements to several types of popular technologies including audio described content on HBO Max.

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Spotlight

Two organizations implement nearly identical employee training initiatives. Company A quickly sees improved metrics & long-term financial results. Company B sees little change – and is back to square one a year later. Why?

While development is critical to engagement, performance, and succession, its overall effectiveness is determined by the quality of an organization’s leaders.

Resources