Cornerstone-Saba Acquisition: What Does it Mean for LMS Customers?

Have you heard the news? Last week – less than two months into 2020 – one of the biggest acquisitions in learning systems history was announced. Cornerstone plans to acquire Saba for a hefty $1.395 billion. Yawn.

As you may have read in my annual industry trends analysis, the pace of acquisitions and strategic equity investments has been accelerating for several years. Many different solutions are coming together – and each deal is driven by unique factors. For instance:

Sometimes a buyer seeks technology that is complementary or superior to its own. In other cases, a purchase can eliminate competition. An acquisition may mean instant access to a massive new customer base or lucrative distribution channels. Also, this kind of move is often driven by financial considerations – for example, to increase profitability or drive down operating costs.