Callidus Software

 Callidus Software Inc. — the producer of cloud solutions founded in 1996 for sales, marketing and work with clients. The American company offers services on the SaaS models which display any information necessary to sales specialists, including the complete list of food prices, the commissions and the incentive plan. By the end of January, 2018 Callidus has about 5800 clients.

2018

Closing of the transaction of SAP Callidus

On April 10, 2018 the SAP SE company announced completion of the transaction on acquisition of Callidus Software, application developer for management of financial flows, including solutions of the class SPM (Sales Perfomance Management, sales management) and CPQ (Configure-Price-Quote).

Each placed share Callidus was converted at the rate of $36. The Callidus Software company notified Nasdaq stock exchange on completion of the transaction and expects suspension of sale of shares before the termination of their quotation.

At the expense of the solutions presented at the market under the CallidusCloud brand, SAP intends to expand the offer in the field of customer relationship management (CRM). In plans of the company — consolidation of the products CallidusCloud with SAP Hybris solution package, entering a cloud portfolio of the company, under the leadership of the acting head of CallidusCloud, Lesley Stretcha. The team of top managers of CallidusCloud remains at the head of the company and will perform support of integration of solutions of CallidusCloud with third-party developments. Sale of solutions of CallidusCloud will be performed both as independent products, and as a part of solution packages of SAP.

The company also expects that purchase of CallidusCloud will allow SAP to complete the formation of the updated front office model which represents a set of intelligent solutions for management of client experience. Will be a part of a solution package:

• The solutions CallidusCloud which provide to the companies tools for increase in compensations and career promotion for sales specialists and also for increase in amounts of transactions;
• Solutions of Gigya — help to implement digital approach in marketing, sales and customer service that allows to build confidential relationship with online customers using the correct management of client data;
• The SAP solutions Hybris for marketing — use the approach based on processing of large volumes of data that helps marketing specialists to attract clients at each stage of lifecycle of interaction with the company;
• Service SAP solutions of Hybris — are focused on customer retention using forecasting of the best options of service;
• The SAP solutions Hybris for omnichannel trade and management of profitability — allow the companies to involve clients via any channel of interaction and from any device, immediately converting transactions into profit and growth of business.

SAP intends to present the updated financial forecast for 2018 taking into account CallidusCloud indicators in the income statement for the first quarter 2017.

SAP buys Callidus

On January 30, 2018 the German producer of the corporate software of SAP announced purchase of the developer of cloud solutions on performance management of sales of Callidus Software for $2.4 billion.

In terms of one stock Callidus the cost of the transaction is $36 that is 10% more than a quotation rate to closing of the Nasdaq exchange on January 29 ($32.7), transfers Reuters news agency.

SAP is going to finance acquisition of Callidus from own means and by means of the long-term loans taken on purchase of assets. Callidus will be attached to the American representative office of SAP. At the same time the existing team of top managers will remain at the head of Callidus.

SAP purchased the developer of cloud software for specialists in sales and marketing of Callidus

SAP predicts increase in profit on merger of Callidus in 2019 financial year. Influence of the transaction on income in the 2018th is not expected. It is going execute all formalities concerning sale of Callidus of SAP company in the second quarter 2018. The transaction was approved by Board of Directors of Callidus, however it still should get approval from shareholders of Callidus and also permission of the relevant regulating authorities.

The CEO of SAP Bill McDermott called Callidus "the innovative company in the area" and noted that acquisition will allow SAP "take" the market of solutions for customer relationship management (CRM).

In particular, it is expected that the transaction will offer SAP prospects in the field of management of financial flows, including in the field of performance monitoring of sales (SPM) and setup of the price offer (CPQ). Callidus offers a full range of the solutions SPM and CPQ which includes support and analytics of sales and also customer interaction. Consolidation of assets will allow the companies to provide to the market the most complete cloud sentence of "Lead-to-Cash". Callidus within several years is a partner of SAP on the basis of the joint sales agreement.

We are glad to combine efforts with SAP — commented Leslie Stretch event, the CEO of Callidus. — This step gives to our clients that they want: flagman solutions for sales of Sales Performance (SPM), Sales Execution (CPQ) and Sales Enablement in combination with SAP Hybris and SAP S/4HANA. It is complex process of "management of money" which is beyond CRM and management of end-to-end business processes.

SAP intends to adhere to the strategy of openness which will support integration of solutions of Callidus with third-party developments. Upon completion of merge of SAP expects to consolidate all modules Callidus Cloud in SAP Hybris as a part of a cloud portfolio of SAP. The SAP Cloud Platform platform is going to be used for technical integration of Callidus Cloud.

According to the Financial Times edition, the transaction with Callidus became for SAP the fourth acquisition in four years. The chief financial officer of the German company Luka Mucic called this purchase "a fine example of M&A-философии SAP". According to him, SAP aims to grow organically, but will buy the companies that "fill those segments which were not enough for us in the cloud market".^[1]

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