What happened

Shares of software outfit Cornerstone OnDemand (CSOD) are higher by 13.4% as of midday Friday following the release of its second-quarter results and the announcement that the company is set to be acquired.

So what

The numbers were good. Cornerstone OnDemand turned $214.3 million worth of revenue into a per-share profit of $0.73, both well up year over year and, perhaps more important, topping analyst estimates for sales of $209.5 million and operating earnings of $0.52 per share. The results extend years of uninterrupted top-line growth for the software-as-a-service outfit, and bottom-line growth as well.

Man's hand plotting a rising bar chart on a chalkboard.

Image source: Getty Images.

The company's Q2 numbers, however, are overshadowed by the clearly bigger news that private equity firm Clearlake Capital Group is offering $5.2 billion in cash -- or $57.50 per share -- to outright acquire Cornerstone OnDemand. The board of directors has agreed to the price, although the matter is still subject to shareholder approval.

Friday's surge leaves the stock at a price near $56.50, or a dollar below Clearlake's offer.

Now what

Were it not for the impending buyout, the second-quarter headlines would bolster the bullish argument for CSOD stock. Given the circumstances, though, Friday's rally is an opportunity to lock in profits.

Sure, the current price isn't quite Clearlake's offer. There's time value to money, though. Even if the deal proceeds without any drama, it still won't finalize for a few months, and there's a small risk that something could derail the acquisition in the meantime. It's also worth noting that some brokerage firms charge investors to complete transactions of this ilk. On balance, the easier and smarter move to make here is simply to exit what's turned out to be a brilliant trade.