Bidding Around Sumtotal Could Buoy Industry

Summary


A bidding war for SumTotal Systems could amount to a shot in the arm for HR software sellers and customers alike amid a sickly economy. Higher valuations for human resources software companies help everyone in the HR software industry says Josh Hersin, head of research firm Bersin & Associates. Vendors have access to more capital, buyers get more sustainable vendors, and investors feel more comfortable with the industry, he says. The bidding battle for SumTotal began the afternoon of April 3. That's when Vista Equity Partners offered $3.25 per share for the company. On April 24, SumTotal announced a deal to be acquired by Accel-KKR for $3.80 a share, or $124 million in total.

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Bidding Around Sumtotal Could Buoy Industry

A bidding war for SumTotal Systems could amount to a shot in the arm for HR software sellers and customers alike amid a sickly economy.

Private equity firms Vista ...

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