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Cornerstone OnDemand Hires Advisers to Explore a Sale

September 14, 2017

Enterprise software company Cornerstone OnDemand is working with financial advisers to explore the possibility of a sale and also defend against the activist investors in its stock, according to a source familiar with the matter.

Cornerstone is working with Goldman Sachs and Centerview Partners on the sale, according to the person, who did not want to be named because the matter is private.

A spokeswoman for Cornerstone declined to comment. Goldman Sachs and Centerview could not immediately be reached for comment.

Cornerstone shares (CSOD) rose more than 11% to $38.90, giving the Santa Monica, Calif.-based company a market capitalization of $2.27 billion after Bloomberg first reported the news on Thursday.

Activist investor Praesidium, which in the past has pushed for the sale of enterprise companies such as Tibco, is the fifth-largest shareholder in Cornerstone with a 5.12% stake, according to Thomson Reuters data. RGM Capital, another activist hedge fund, is Cornerstone’s seventh-largest shareholder with a 4.12% stake.

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RGM Capital’s managing partner, Robert Moses, wrote a letter to the company in late July urging its board to explore a strategic review and potential sale. RGM and Praesidium could not immediately be reached for comment.