WALLDORF, Germany and
PROVO, Utah and SEATTLE, Nov.
11, 2018 /PRNewswire/ -- SAP SE (NYSE: SAP) and
Qualtrics International Inc. (Qualtrics) today announced they have
entered into a definitive agreement under which SAP SE intends to
acquire Qualtrics, the global pioneer of the experience management
(XM) software category that enables organizations to thrive in
today's experience economy. Qualtrics' XM Platform™ collects
feedback and data across the four vital areas of a business –
customers, employees, product and brand – that are essential in a
world where companies succeed or fail based on the experiences they
deliver.
Under the terms of the agreement, SAP will acquire all
outstanding shares of Qualtrics for US$8
billion in cash. SAP has secured financing in
the amount of €7 billion 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 Directors of SAP and
Qualtrics have approved the transaction. Qualtrics' shareholders
have also approved the transaction.
SAP CEO Bill McDermott
said: "We continually seek out transformational opportunities –
today's announcement is exactly that. Together, SAP and Qualtrics
represent a new paradigm, similar to market-making shifts in
personal operating systems, smart devices and social networks. SAP
already touches 77 percent 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."
McDermott added: "The combination of Qualtrics and SAP
reaffirms experience management as the groundbreaking new frontier
for the technology industry. SAP and Qualtrics are seizing this
opportunity as like-minded innovators, united in mission, strategy
and culture. We share the belief that every human voice holds
value, every experience matters and that the best-run businesses
can make the world run better. We can't wait to stand beside Ryan
and his amazing colleagues for the next chapters in the experience
management story. The best for Qualtrics and SAP is yet to
come!"
Ryan Smith, CEO of
Qualtrics, said: "Our mission is to help organizations deliver the
experiences that turn their customers into fanatics, employees into
ambassadors, products into obsessions and brands into religions.
Supported by a global team of over 95,000, SAP will help us scale
faster and achieve our mission on a broader stage. This will put
the XM Platform everywhere overnight. We could not be more excited
to join forces with Bill and the SAP team in this
once-in-a-generation opportunity to power the experience
economy."
SAP and Qualtrics Will Together Deliver the
Transformative Potential of Experience Data (X-Data) Combined with
Operational Data (O-Data)
Experience management
(XM) focuses on obtaining and tapping the value of outside-in
customer, employee, product and brand feedback. Combining
Qualtrics' experience data and insights with SAP's unparalleled
operational data will enable customers to better manage supply
chains, networks, employees and core processes. Together, SAP and
Qualtrics will deliver a unique end-to-end experience and
operational management system to power organizations.
SAP Will Accelerate Qualtrics' Growth and Further Its
Mission By Offering Global Scale, Reach And
Resources
Leveraging SAP's more than 413,000
customers and global salesforce of around 15,000, Qualtrics will be
able to scale rapidly around the world. SAP has a strong track
record of accelerating growth for the innovative companies it
acquires, as exemplified by the rapid success of SAP's recent
acquisitions.
Qualtrics expects full-year 2018 revenue to exceed
US$400 million and projects a forward
growth rate of greater than 40 percent, 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.
Qualtrics was advised on the transaction by Qatalyst
Partners and Goodwin Procter, LLP.
J.P. Morgan acted as financial advisor and Jones Day acted as legal advisor to
SAP.
SAP and Qualtrics will host a joint
conference call for financial analysts and investors on
November 12, 2018, at 7:00 a.m.
CET (1:00 a.m. ET November 12 / 10:00 p.m.
PT, November 11) regarding
this transaction. The call will be available to international
callers at +44 330 336 9411, to U.S. callers at +1-929-477-0402,
conference code: 9656637, and via webcast at
https://broadcast.co.sap.com/go/investor. A replay will be provided
later on http://www.sap.com/investor.
For more information, please click here. For an investor
presentation, please click here.
Visit the SAP News
Center. Follow SAP on Twitter at
@sapnews.
About SAP
As the cloud company
powered by SAP HANA®, SAP is the market leader in enterprise
application software, helping companies of all sizes and in all
industries run at their best: 77% of the world's transaction
revenue touches an SAP® system. Our machine learning, Internet of
Things (IoT), and advanced analytics technologies help turn
customers' businesses into intelligent enterprises. SAP helps give
people and organizations deep business insight and fosters
collaboration that helps them stay ahead of their competition. We
simplify technology for companies so they can consume our software
the way they want – without disruption. Our end-to-end suite of
applications and services enables more than 413,000 business and
public customers to operate profitably, adapt continuously, and
make a difference. With a global network of customers, partners,
employees, and thought leaders, SAP helps the world run better and
improve people's lives. For more information, visit
www.sap.com.
About Qualtrics
Qualtrics is the
technology platform that organizations use to collect, manage, and
act on experience data, also called X-data™. The Qualtrics XM
Platform™ is a system of action, used by teams, departments, and
entire organizations to manage the four core experiences of
business—customer, product, employee and brand—on one platform.
Over 9,000 enterprises worldwide, including more than 75 percent of
the Fortune 100 and 99 of the top 100 U.S. business schools, rely
on Qualtrics to consistently build products that people love,
create more loyal customers, develop a phenomenal employee culture,
and build iconic brands. To learn more, and for a free account,
please visit www.qualtrics.com.
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