Gainesville-based SumTotal being bought by Ireland company
Published: Thursday, August 21, 2014 at 6:17 p.m.
Last Modified: Thursday, August 21, 2014 at 7:07 p.m.
In a marriage of human resource service companies, Skillsoft Corporation announced Thursday that it has entered into an agreement to acquire Gainesville-based SumTotal Systems.
Terms of the deal, expected to close in the next 45 days, were not disclosed.
Skillsoft Corporation is a subsidiary of Skillsoft Limited with global headquarters in Dublin, Ireland, and U.S. headquarters in Nashua, New Hampshire. The company makes training courses, books and videos for 6,000 customers that range from small to global corporations, government and educational institutions, with more than 19 million users.
SumTotal's hiring, training and payroll management software is used by 3,500 companies — including half of the Fortune 500 — with 45 million employees in more than 150 countries.
The company has nearly 1,000 employees worldwide with other major offices in London, Paris, Tokyo, Shanghai, Sydney and Hyderabad, India, as well as U.S. centers in Des Moines, Iowa, Chicago, Parsippany, New Jersey, and Columbus, Ohio. The Gainesville office has between 225 and 250 employees and 30 open positions.
The deal would expand Skillsoft's service portfolio and global reach, the company said in a news release.
SumTotal CEO Hardeep Gulati said the company will remain in Gainesville as a business unit of Skillsoft and give local employees more opportunities as the company expands, including in Skillsoft's other business units.
"They really like the Gainesville, Florida, location given that we have been able to grow this team and attract talent," he said. "They are very interested to see how they can even grow and attract talent to support their other business and expansion, as well."
He said Skillsoft would use SumTotal's software platform to deliver its training content, in addition to the services SumTotal now provides.
SumTotal was founded in Mountain View, California, in 1985 to provide employee training software and has added a suite of HR software services through a series of acquisitions and internal development. In 2006, it acquired MindSolve, founded in Gainesville in 1997, for its employee evaluation software.
SumTotal moved its headquarters to Gainesville in 2010 to get away from the talent war for software employees in Silicon Valley and for access to talent coming out of the University of Florida and other major Florida cities and universities.
The company occupies most of the Madison Park building on Northwest 43rd Street.
SumTotal is owned by Vista Equity Partners, which would maintain a small ownership stake in the combined company.