Quick Take
Cornerstone OnDemand (CSOD) has announced the proposed acquisition of Saba Software for $1.395 billion in cash and stock.
Saba has developed a machine learning-based talent experience platform for enterprises.
With the deal, CSOD is making a big bet on talent enhancement capabilities but appears to paying a high price while providing no forward guidance.
Give those uncertainties and CSOD's high stock valuation, my bias on the stock is NEUTRAL.
Target Company
Dublin, California-based Saba was founded to help businesses of all sizes improve their talent management processes.
Management is headed by