On Aug. 5, 2021, talent management software provider Cornerstone OnDemand Inc. announced that it had agreed to be acquired by financial-sponsor Clearlake Capital Group for approximately $5.2 billion. At the close of the transaction, which remains subject to the receipt of shareholder and regulatory approvals, there is a high probability that the company's private-equity owners will significantly increase its leverage. However, its new capital structure has not been finalized. We placed our 'B+' issuer credit rating on Cornerstone on CreditWatch with negative implications. We will resolve the CreditWatch placement once the acquisition closes and we are able to review the company's capital structure, integration plan, synergy expectations, and appetite for further acquisitions. The CreditWatch placement follows Cornerstone's announcement that it
