As the sheer number of HR-related technologies hit the marketplace, there is bound to be some competition as the best ideas surface to the top. According to Talent Management Magazine, Skillsoft Corporation announced on August 21st their plans to acquire SumTotal Systems, Inc.
SumTotal, from Vista Equity Partners, is an HR software solution provider that begins with the basis that employees are not “capital.” The company takes a “new approach to discovering, developing and unleashing the hidden potential within our customers’ workforce,” according to the company website.
SumTotal’s human resources software has 49 million users across the globe with over 3,500 customers, including Fortune 500 companies. They provide a wide selection of offerings for human resources including talent, learning, workforce, payroll, expenses, analytics, mobile, and social. The company has been in HR for 30 years, with the first in market share in learning management systems and third in talent management.
The acquisition by Skillsoft will increase their client base, global reach, and list of services. Prior to the acquisition, Skillsoft focused on using technology to deliver content to individuals through cloud-based learning systems. They have over 6000 customers and over 19 million users of their tailored educational program.
In 2011, both companies increased their capabilities as Skillsoft joined with Element K, a learning technology firm, and SumTotal acquired GeoLearning, Inc., training software and services provider.
In a news release, SumTotal CEO Hardeep Gulati stated approval of the move. “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.”
Vista Equity Partners will maintain a small stake in the new combined company. The President of Vista Equity Partners, Brian Sheth, expressed his pleasure in having worked with SumTotal during the past five years. “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,” he said.
Financial terms in the acquisition were not disclosed, although the transaction is under several conditions, including the expiration of the applicable waiting period under the Hart-Scott-Rodino Act.