SAP (SAP) and Qualtrics International announced they have entered into a definitive agreement under which SAP intends to acquire Qualtrics, provider of experience management software.
Qualtrics’ XM Platform collects feedback and data across the four vital areas of a business – customers, employees, product, and brand. Under the terms of the agreement, SAP will acquire all outstanding shares of Qualtrics for $8B in cash. SAP has secured financing in the amount of EUR 7B to cover purchase price and acquisition-related costs. The purchase price includes unvested employee incentive compensation and cash on the balance sheet at close. Subject to customary closing conditions and attainment of regulatory clearances, the acquisition is expected to close in the first half of 2019. The boards of SAP and Qualtrics have approved the transaction. Qualtrics’ shareholders have also approved the transaction.
Qualtrics expects full year 2018 revenue to exceed $400M and projects a forward growth rate of greater than 40%, not including potential synergies of being part of SAP. Following the closing of the transaction, Qualtrics is expected to maintain its leadership, personnel, branding and culture, operating as an entity within SAP’s Cloud Business Group. Ryan Smith will continue to lead Qualtrics, and Qualtrics is expected to continue to maintain dual headquarters in Provo, Utah, and Seattle, Washington.
