Cornerstone OnDemand, a specialist in cloud-based talent management solutions, announced that it has entered into a definitive agreement to acquire privately held Sonar6, another provider of cloud-based talent management solutions serving small businesses globally.
Cornerstone said it will continue to offer and invest in Sonar6 solutions, but the companies will not integrate their products.
Cornerstone will continue to operate Sonar6 in Auckland, New Zealand, where the company is based, and Sonar6 employees are expected to remain in their current roles after the transaction closes. The company's integrated software-as-a-service (SaaS) solution consists of the Cornerstone Recruiting Cloud, the Cornerstone Performance Cloud, the Cornerstone Learning Cloud and the Cornerstone Extended Enterprise Cloud.
Sonar6 CEO Michael Carden will be appointed to Cornerstone's newly created position of vice president of small business operations. In addition, co-founder Mark Hellier will continue in his role of driving innovation as head of product, and Pete Weaver will remain as head of retention.
Sonar6 products will remain separate to preserve Cornerstone's organically developed solution for enterprise and midmarket clients. Sonar6's wares will be offered as a Cornerstone solution specifically for organizations having fewer than 500 employees. Sonar6 brings more than 350 global clients to Cornerstone, a joint press release noted.
Cornerstone said it expects to complete the transaction within 30 days, subject to closing conditions.
"The recent consolidation in the talent management space has disrupted the market and created many opportunities for Cornerstone," said Adam Miller, president and CEO of Cornerstone OnDemand. "ERP vendors are now distracted with merging product roadmaps and engrossed in the integration of their new cloud offerings, and we saw a clear opening to accelerate our strategy and penetrate the SMB market. Sonar6 has built a reputation as the leading talent management solution for small businesses. Together, we will expand Cornerstone's global market opportunity."
Sonar6 is known in the talent management industry for its ability to engage employees with its interactive technology. Like Cornerstone, Sonar6 offers an organic, cloud-based solution. Sonar6's graphical approach to performance reviews has won accolades, including Gartner's "Cool Vendors" and HR Executive's "Top Ten HR Products."
"Cornerstone OnDemand and Sonar6 share a vision for empowering employees and creating an engaged workforce," said Carden. "Our joining forces will further solidify the strength of our enhanced offering in the marketplace. We are excited about joining the Cornerstone team."