Software giant SAP is to acquire technology platform Qualtrics International in an US$8bn deal that will bring experience management to supply chains, networks and core processes.
Qualtrics is a global pioneer in experience management (XM) software, which captures data from outside-in customer, employee, product and brand feedback. This, combined with SAP’s operational data, will enable the two to deliver an end-to-end experience and operational management system, helping businesses to deliver better experiences.
“Together, SAP and Qualtrics represent a new paradigm, similar to market-making shifts in personal operating systems, smart devices, and social networks,” claims SAP CEO Bill McDermott.
“SAP already touches 77% of the world’s transactions. When you combine our operational data with Qualtrics’ experience data, we will accelerate the XM category with an end-to-end solution with immediate global scale. For Qualtrics, this introduces a dynamic new partner with the belief, passion and scale to bring experience management to millions of customers around the world.”
Under the terms of the agreement, SAP will acquire all outstanding shares of Qualtrics for $8bn in cash. SAP has secured financing in the amount of EUR7bn (US$7.89bn) 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.