SKIL - Skillsoft to sell SumTotal to Cornerstone for $200M cash

Skillsoft (NYSE:SKIL) to sell its SumTotal (SUMT) business, a provider of learning and human capital management software for highly regulated industries, to Cornerstone OnDemand (CSOD) for approximately $200M cash. The transaction is expected to close in the second half of 2022 and is expected to be immediately accretive to company’s bookings and revenue growth at closing, each by approximately one percentage point. In FY2022, on a reported basis SumTotal generated approximately $123M in bookings and $120M in revenue. The company expects SumTotal to be approximately flat across those metrics in FY2023, which delivers an enterprise value multiple of approximately 8.0x adjusted EBITDA including corporate allocations. The company expects pro forma FY2022 net leverage to be approximately 3.7x. A portion of the net proceeds from the transaction will be used to partially repay senior secured term loan B facility. “Through the divestiture of SumTotal, we are aligning and simplifying Skillsoft’s portfolio

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Skillsoft to sell SumTotal to Cornerstone for $200M cash