SAP to acquire market tracker Qualtrics for $8 billion

Lloyd Doyle
Ноября 15, 2018

SAP SE, a renowned multinational software corporation based out of Germany, has reportedly announced that it is acquiring US-based experience management company Qualtrics for $8 billion before its highly-anticipated initial public offering (IPO).

For the German software house, the agreed takeover provides a real-time window on the sentiment of consumers, complementing Chief Executive Bill McDermott's push from its traditional back-office products into sales and marketing.

"Tuck-ins are tuck-ins but transformative deals are transformative deals", McDermott said in a conference call.

After the close of the deal, Qualtrics will maintain its existing headquarters in Seattle, Washington, and Provo, Utah.

Qualtrics, a cloud-based user experience software vendor which has been a part of "unicorn" club, was all set to debut its IPO this week. Both SAP's and Qualtrics' boards as well as the USA firm's shareholders have approved the transaction, which is slated for completion by the middle of next year. Articles appear on for a limited time. Qualtrics complements SAP's flagship offerings, the same way that LinkedIn complements Microsoft's customer relationship management (CRM) strategy.

"I feel more at peace about this than going public", Smith tells Konrad. The company's XM Platform collects feedback and data across the four vital areas of a business - customers, employees, product and brand - that are essential in a world where companies succeed or fail based on the experiences they deliver.

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The deal, which is the largest for SAP in four years, is now expected to see Qualtrics CEO Smith remain in place. It had expected to raise about $495 million in its IPO and at the midpoint of its $18-to-$21 price range, it would have been valued at $4.8 billion.

Constellation Research Inc. analyst Holger Mueller said this combination of the two types of data is important because SAP as a leader in enterprise resource planning understands structured data well.

McDermott said he like Qualtrics' culture and hopes to implement it into his company. "It's about collecting more data - about products, customers and supply chains".

According to Andrew Joiner, CEO of customer experience management firm InMoment, the price shows the "strong demand for technology that helps companies tap into experience data", in this case by getting survey answers from customers, would-be customers and employees at scale.

SAP's competitors include Salesforce and Oracle. The company expects 2018 revenue to exceed $400 million and prior to the acquisition announcement was forecasting a forward growth rate of 40 percent. Adding that the company had no need to go public as it has no investor, employee or financial pressure, Smith further stated that the sole objective for the company going public was to create the category and that nothing would be bigger for that goal than this combination. "We could not be more excited to join forces with Bill and the SAP team in this once-in-a-generation opportunity to power the experience economy".

Qualtrics was advised on the transaction by Qatalyst Partners and Goodwin Proctor, LLP. J.P. Morgan acted as financial advisor and Jones Day acted as legal advisor to SAP.

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