In a somewhat lateral move, educational technology company Skillsoft has entered an agreement to sell SumTotal, its human resource management (HRM) subsidiary, to Cornerstone OnDemand for approximately $200 million. This comes mere months after Cornerstone, a cloud-based learning and talent management software provider, acquired learning experience platform provider EdCast.
Both edtech providers stand to gain from the all-cash acquisition. For Skillsoft, the deal helps streamline its portfolio for the benefit of clients and the company’s growth and profitability—especially as a publicly-traded venture. Cornerstone, which was taken private in 2021, continues to fortify the content-heavy strategy that has made it a $5 billion company.
Skillsoft originally acquired SumTotal in 2014, leveraging its innovative talent development products along with its own corporate learning management offerings. In fiscal year 2022, SumTotal reportedly generated approximately $123 million in bookings and $120 million in revenue; the company expects these numbers to stay flat in fiscal year 2023.