Dublin (IR)/Nashua, NH (USA), September 2014 - Skillsoft Limited, a pioneer in technology-delivered learning solutions, has announced that its subsidiary, Skillsoft Corporation, has entered into a definitive agreement for the acquisition of SumTotal Systems, LLC from affiliates of Vista Equity Partners, a US-based private equity firm. Terms of the transaction were not disclosed.
Skillsoft has a long history of innovation and delivery of solutions for its customers worldwide, ranging from global enterprises, government, and education to mid-sized and small businesses. The acquisition of SumTotal expands Skillsoft’s solution portfolio and global reach.
SumTotal provides flexible, next-generation human resources (HR) solutions to 3,500 customers and 49 million users worldwide, including many of the Fortune 500. SumTotal’s Talent Expansion solution provides personalized learning and HR processes to organizations of all sizes.
"We’re very excited about the opportunity to bring together the experience and strengths of two proven leaders in the cloud-based HR-solutions market," said Skillsoft CEO, Chuck Moran. "The integration of these complementary products, Skillsoft’s technology-delivered learning assets and SumTotal’s solutions for learning, talent, and workforce management, will allow our customers to break new ground in implementing more comprehensive solutions for managing and expanding their workforce talent."
"We are pleased to support the management team with such a significant and transformational transaction so soon in our tenure together," said Frank van den Bosch, Partner at Charterhouse Capital Partners LLP, which acquired Skillsoft in April 2014. "Skillsoft’s acquisition of SumTotal brings together two of the most widely respected and experienced industry players and gives us the ability to present an exciting and compelling opportunity for the combined global customer base."
"We look forward to joining the Skillsoft family," said SumTotal CEO Hardeep Gulati. "This acquisition is a pivotal milestone in the 29-year history of SumTotal and a tremendous endorsement of our employees, as well as the differentiated solutions and services that SumTotal provides. I am very excited about the opportunity to provide more value to our customers, who now will benefit from a comprehensive content-rich HR solution."
"It has been our pleasure to work with SumTotal over the past five years to expand their portfolio of solutions and better serve their customers and the HR industry as a whole," said Brian Sheth, President of Vista Equity Partners. "We are confident that SumTotal and Skillsoft together are well positioned to deliver tremendous value to customers, and we wish the company the very best during its next phase of growth." As part of the transaction, Vista Equity Partners will maintain a small ownership stake in the combined company.
The closing of this transaction is subject to various conditions, including the expiration of the applicable waiting period under the Hart-Scott-Rodino Act.
Deutsche Bank Securities Inc. acted as exclusive financial advisor to Skillsoft. Committed financing for the transaction is being provided by Barclays, Morgan Stanley, Deutsche Bank, and Credit Suisse. Simpson Thacher & Bartlett LLP acted as legal counsel to Skillsoft. Evercore acted as exclusive financial advisor to Vista. Kirkland & Ellis acted as legal counsel to Vista.
