SAP buys cloud HCM company for $3.4bn

SAP acquires SuccessFactors to boost cloud portfolio

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SAP buys cloud HCM company for $3.4bn SAP will acquired SuccessFactors for $3.4bn.
By  Mark Sutton Published  December 5, 2011

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."

"This is a revolutionary combination of proven capabilities that will allow SuccessFactors to accelerate our roadmap by 10 years, and bring the world's leading application knowledge and intellectual property to our customers through the cloud, and the largest applications customer base instantly," said Lars Dalgaard, founder and CEO, SuccessFactors. "Expanding relationships with SAP's 176,000 customers with our speed to value, friendly user interface, on mobile devices and the web, and seamlessly delivering more SAP solutions in the cloud will be legendary, as organizations adopt the cloud to improve their business. SuccessFactors has proven we have the technology and people to deliver the world's biggest cloud deployments in terms of users and countries per customer, and also the most applications per customer from the same flexible scalable cloud platform. The business world is ready for enterprise-class cloud applications and together, we can deliver incredible new innovation for global businesses."

2627 days ago
Vinod Mehra

"A company that cannot imagine the future wont be around to enjoy it" said C.K. Prahalad. And is Cloud, Crowd sourcing and Broadband are the movers and shakers in the market.
SAP acquisition of HCM is a step in the right direction

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