SAP buys cloud HCM company for $3.4bn
SAP acquires SuccessFactors to boost cloud portfolio
SAP has announced the acquisition of cloud-based human capital management (HCM) solution provider SuccessFactors, for $3.4 billion.
The deal, which is subject to regulatory approval, will give SAP access to SuccessFactors cloud-expertise, to deliver a comprehensive HCM solution that will be complementary to SAP's existing HCM solutions and cloud offerings.
SuccessFactors is one of the largest providers of cloud solutions by number of subscribers, at present serving some 15 million subscription seats in 3,500 companies worldwide.
The deal values SuccessFactor's stock at a 52% premium of its stock price, and will be funded from SAP's cash on hand and a euros 1 billion term loan facility. The deal is expected to close in Q1 next year.
"The cloud is a core of SAP's future growth, and the combination of SuccessFactors' leadership team and technology with SAP will create a cloud powerhouse. The acquisition will help us address the top priority for CEOs globally - managing people and talent," said Bill McDermott, Co-CEO, SAP. "Together, SAP and SuccessFactors will create tremendous business value for customers, with potent synergies to accelerate our growth in the cloud."
"The depth and experience that SAP brings to customers via our cloud and on-premise portfolio fit elegantly with SuccessFactors' world-class expertise in providing high-performing, low-cost, native cloud applications that customers are passionate about," said Jim Hagemann Snabe, Co-CEO, SAP. "Together, we will lead the industry in providing end-to-end solutions consistently to meet any deployment preference, whether on premise, in the cloud or on device."
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