SAP acquisitions

2022: Taulia Software Developer Purchase

At the end of January 2022, SAP bought a controlling stake in Taulia. The financial component of the transaction of the company did not disclose. More details here.

2021

Purchase of AI platform developer to help with recruitment SwoopTalent

In mid-August 2021, SAP announced the purchase of SwoopTalent. The company does not disclose the financial terms of the transaction. More details here.

Signavio Business Process Automation Software Developer Purchase Plans

At the end of January 2021, it became known that it SAP was going to buy startup Signavio along with a cloud-based business process management tool. The transaction can cost up to $1.2 billion, the agency said Bloomberg , citing its sources. More. here

2020

Completion of Emarsys-SAP Transaction

On November 9, 2020, SAP SE announced the completion of the acquisition of Emarsys, a supplier of omnichannel platforms for customer interaction. The terms of the transaction were not disclosed. More details here.

Purchase of Emarsys Marketing Automation Cloud Developer

On October 1, 2020, SAP announced the acquisition of Emarsys, but chose to keep the transaction value secret. Thanks to this purchase, the German enterprise software manufacturer will help customers establish communications with their customers in all online channels. More details here.

2018

Purchase of robotic process automation technology developer Contextor

On November 19, 2018, SAP announced the purchase of Contextor and thereby enters the market for robotic process automation (RPA). More details here.

Oracle and SAP have bought $100 billion worth of companies since 2005

In November 2018, it became known about the leadership of Oracle and SAP in terms of absorbing software manufacturers. IT giants spent more than $100 billion on these deals. If we talk about the purchase of American IT-Business by European companies, then here SAP ranks first by a wide margin.

Europe's largest buyers of American IT companies, Dealogic data

The Financial Times newspaper cites data from the British analytical company Dealogic, according to which from 2005 to 2018, SAP spent $44 billion on the acquisition of software developers. Oracle's similar expenses amounted to about $57 billion. SAP has concluded 20 such transactions, Oracle - 28, Salesforce (closed the three largest buyers of software companies) - 14.

Most M&A transactions involving SAP in terms of money spent are concluded with American technology companies - we are talking about the amount of $36 billion. This includes the acquisition of a developer ON for travel management SAP Concur for $8.6 billion in 2014 and a manufacturer of analytical solutions for Qualtrics $8 billion in November 2018. These are the two largest purchases in the history of SAP by November 2018.

Top three software buyers in the world since 2005, Dealogic data

After the announcement of the sale of Qualtrics, SAP shares fell in price, as investors and analysts considered the transaction value to be overpriced. SAP will pay 20 times the annual revenue of Qualtrics.

However, SAP CEO Bill McDermott called the acquisition of Qualtrics "transformative" in terms of potential growth, compared this deal with the takeover of Instagram photo service by Facebook and expressed confidence that the market will ultimately understand the correctness of SAP's actions.

This acquisition strengthens our ability to be the fastest growing cloud company in the universe, and on an absolute basis, operating profit, if you are interested in margin indicators, will grow faster than revenue, "said the head of SAP in a conversation with the Financial Times.

The publication notes that the deal shows the seriousness of the competition of the largest European software company in the fight against Salesforce, which is considered a pioneer in the field of customer relationship management (CRM).

In January 2018, when SAP announced the purchase of the cloud solutions developer for sales, marketing and customer relations Callidus for $2.4 billion, Bill McDermott said that the German company wants to "turn the CRM market" and directly compete with Salesforce.com.

When asked by a journalist whether SAP managed to surpass the Salesforce.com in the CRM market, McDermott regretted: "They didn't even get close."

Salesforce.com CEO Mark Benioff also respects SAP. According to him, SAP is the "only company" that Salesforce.com would like to overtake not only in the CRM market, but also in revenue as a whole. By 2018, SAP sales are about three times higher than those of Salesforce.com.

According to Gartner analyst Ilona Hansen, Salesforce.com is ahead of both CRM market share and product capabilities, but Salesforce.com focuses only on these technologies for almost two decades.

SAP is still too slow to become a real competitor to Salesforce.com, but it may happen that in six months [when the deal to acquire Qualtrics is closed - approx. TAdviser] SAP will become a real opponent if it continues to follow its path, the expert said.

According to the Financial Times, critics see the takeover of Qualtrics as an attempt to mask the inability of SAP to independently create progressive technologies. One of the former top managers of SAP in a conversation with the publication confirmed this opinion, noting that there are very few truly breakthrough innovations.

The head of the cloud company Zuora Tien Tzuo says that the cost of purchase of Qualtrics hints at desperate desire of SAP and other software producers of an old formation to increase cloudy revenue to please of Wall Street.^[1]

Purchase of Qualitics online review software developer for $8 billion

On November 11, 2018 SAP , she announced the purchase of a developer ON to analyze reviews on the Internet for Qualitics $8 billion a few days before the planned IPO acquisition of the company. More. here

Buying Callidus Software

On January 30, 2018, SAP announced the purchase of the cloud solutions developer for sales and marketing Callidus Software for $2.4 billion. More details here.

2017: Purchase Gigya

In September 2017, the German corporate producer software SAP announced its purchase Gigya in order to strengthen its position in the fast-growing market for online marketing technologies for customer interaction. More. here

2014: Concur takeover for $8.3 billion and announcement of halting major acquisitions

In September 2014, SAP announced the purchase of Concur Technologies, a developer of online tools for managing corporate expenses and travel for $8.3 billion.

This transaction may remain the largest in history for SAP. The German company has revised its attitude to mergers and acquisitions (Mergers and Acquisitions, M&A).

At the conference European Technology, Media and Telecoms organized by Morgan Stanley which took place on November 19-20, 2014 in Barcelona the executive director of SAP Bill McDermott said that in the next several years the company does not plan to make large acquisitions.^[2]

"Faced with a choice - to step up or slow down, we stopped at the second. We got everything we wanted, "said the head of the German corporate software manufacturer

He recalled that the takeover of Concur is the largest deal for SAP, thanks to which the company's business software assortment will become more complete. Earlier in this market, SAP acquired the developer of commercial online platforms Ariba and the manufacturer of personnel management software Fieldglass.

Purchase of Concur Technologies may remain the largest in history for SAP

How the German company will develop over the next five years, it will tell in January 2015. According to McDermott, a detailed forecast will be released covering each SAP business and characterizing each year separately for the period 2015-2020. In particular, it is planned to publish targets for sales of traditional software and cloud solutions.

According to analysts polled by Bloomberg, SAP revenue will increase by 4% in 2014, and next year the financial indicator will rise by 7%. In 2010-2012 sales of the company grew by more than 10%.

2011: SuccessFactors for $3.4 billion

On December 5, 2011, SAP announced the signing of a binding agreement to acquire an American developer of cloud services for enterprises SuccessFactors for $3.4 billion in cash^[3].

For each share of the California SuccessFactors, SAP will pay $40, which is 52% higher than the value of securities at the time of the closure of the New York Stock Exchange on Friday, December 2 ($26.25 apiece). The transaction is expected to be completed in the first quarter of 2012.

"This acquisition will complement SAP assets related to the release of cloud products, qualified specialists and popular SuccessFactors technologies, which will significantly strengthen the position of the German company as a provider of cloud applications, platforms and infrastructures," the official statement said.

At the time of the transaction, the SAP portfolio already includes several cloud solutions, including a comprehensive package for implementing SAP Business ByDesign cloud services for small, medium-sized enterprises and branches of large companies, as well as SAP Sales on Demand (an alternative to such solutions Salesforce and Microsoft Dynamics CRM).

SuccessFactors, in turn, specializes in human resources management products. Solutions cover enterprises with different numbers of employees - from several tens to millions.

More than 3.5 thousand enterprises from 168 countries use SuccessFactors products. The company's revenue for the third quarter of 2011 year increased by 77% year to $91.2 million. Over the past 4 years, the company's share rate has risen 79%.

As part of the agreement, SuccessFactors Chief Executive Officer Lars Dalgaard will lead SAP's cloud business, continuing to serve in the SuccessFactors. In addition, he plans to provide a chair on the board of directors of SAP. Located in San Mateo SuccessFactors with its 1,450 employees, it will remain an independent company and will be called "SuccessFactors, SAP."

Cloud computing refers to the technologies that can have the greatest impact on the development of the economy and business in 2012-2014. According to Gartner, in the period from 2010 to 2014, the volume of the global market for "cloud" services will more than double - from $68.3 billion to $148.8 billion. It is logical that large players are trying to prepare the ground: a month and a half ago, Oracle announced the acquisition of another developer of "cloud" services, the company RightNow Technologies, for $1.5 billion.

2010: Purchase of Sybase

In July 2010, SAP AG announced the completion of the Sybase acquisition process. The acquisition was completed through a short-term merger under the laws of the US state of Delaware, under which Sheffield Acquisition Corp., a wholly indirect owned subsidiary of SAP, was merged with Sybase Corporation. As a result of this merger, Sybase became a 100% subsidiary of SAP America in the United States, an active subsidiary of SAP.

As a result of the merger, all offered Sybase shares that were not included in the previous bid (excluding shares of Sybase, SAP America or its wholly owned subsidiaries, as well as shares held by shareholders who properly exercise valuation rights under Delaware law)were converted to a cash entitlement of dollars $65 per share without interest, taking into account all necessary taxes; the same indemnity shall be paid to shareholders as part of the tender proposal.

2009: Budget announcement for purchases - €5 billion

In September 2009, SAP announced that it was ready to spend €5 billion ($7.4 billion) on the acquisition of new companies.

2008: French Business Objects for €4.8 billion

Acquisition of the French company Business Objects for €4.8 billion.

2006: Frictionless Commerce

Acquisition of Frictionless Commerce (SRM).

2002: Israeli TopManage to create SAP Business One

In March 2002, SAP acquired the Israeli company TopManage for about $50 million, on the basis of which the SAP Business One solution for small and medium businesses was created and ^[4].

2001: Top Tier

2001 - Acquisition of Top Tier

See also

• SAP SE
• SAP SE History

• M&A mergers and acquisitions
• Cisco acquisitions
• Acquisition and sale of Microsoft assets
• SAP acquisitions
• Oracle acquisitions
• Acquisition and sale of Intel assets
• Acquisition and sale of IBM assets

Notes