FRANKFURT (Reuters) – Germany's SAP ( SAPG.DE ) said on Sunday that he bought Qualtrics International Inc for $ 8 billion in cash and predicted a planned listing of the US company specializing in survey consumers online.
FILPHOTO: The logo of the German software group SAP is depicted at the headquarters in Walldorf, Germany, May 1[ads1]2, 2016. REUTERS / Ralph Orlowski / Filfoto
The Agreed Agreement, SAP's largest since it purchased travel and expenses management company, agrees in 2014 for $ 8.3 billion, behind CEO Bill McDermott's expansion to Customer Relationship Management (CRM) from the core to help businesses run their finances, logistics and human resources.
Qualtrics collects feedback and data about customers, employees, products and brands for 9000 companies worldwide, providing real-time insights that are important in an increasingly digital world.
McDermott said that it would give SAP an advantage over competitors as he continued to be proud of breaking backward-looking figures as for customer shots.
"The legendary players who led their 90's technology into the 21st century were just wondered," he told reporters on a conference call.
Qualtrics completes its software portfolio and increases its share of cloud-based subscription software, McDermott adds to an interview.
SAP's competitors include Salesforce ( CRM.N ) and Oracle Corp ( ORCL.N ).
For Qualtrics, the agreement marks a dramatic outcome only days before the 16-year-old company was due to the launch of a smaller initial public offer of shares. Qualtrics CEO Ryan Smith, who owns about 40 percent of the company with his brother and father, said in an interview that he believed that a stock market introduction would have rated the company at least at $ 6 billion.
] "We should be one day worth $ 20 billion or $ 30 billion, like a ServiceNow Inc ( NOW.N ) or a workday purchase ( WDAY.O Sa Smith. "We had no financial pressure to do anything.
Smith will continue at work, and the company will maintain its double headquarters in Provo, Utah and Seattle.
The agreement, approved by the boards of both companies, is expected to close in the first half of 2019.
OPERATION MEETS EXPERIENCE
SAP sees an opportunity to combine its operational data – The company says 77 percent of world revenue revenue affects one of its systems – with "experience data" Qualtrics XM Platform collects
The two leaders met a few months back and quickly struck a friendship – McDermott said he showed up at lunch at Smith's home in a suit and clothes suit, and the two ended up playing basketball in the yard.
"We knocks it off just outside the flaggerm unseen, "said McDermott, a 57-year-old New Yorker who has led SAP since 2010.
SAP boss said earlier that he was just looking at" tuck-in "acquisitions. He described the Qualtrics agreement as a transformative in terms of growth potential, compared to Facebook Incs ( FB.O ) taking over Instagram photo sharing site.
Qualtrics expects revenues to exceed 400 million dollars this year, and propagate growth over 40 percent, not with possible synergies that may occur as part of SAP. Smith said that the business had been consistent cash flow positive.
SAP expects, however, that total revenue will grow by 7.5 to 8.5 percent to over 25 billion dollars ($ 28 billion) – although the new cloud-based products achieve comparable growth rates with Qualtrics.
SAP recently launched a new cloud based sales and marketing package, called C / 4HANA, to complement the S-4HANA series that has been sold to 9,500 companies.
SAP will acquire all outstanding shares in Qualtrics and have secured 7 billion euros in funding to cover purchase price and acquisition-related costs.
Qualtrics was informed of the transaction by Qatalyst Partners and Goodwin Proctor, LLP. JPMorgan served as financial advisor and Jones Day as legal advisor for SAP.
Reporting of Douglas Busvine in Frankfurt and Liana B. Baker in New York; Editing Peter Cooney