SAP picked up Qualtrics International Inc. for $8 billion in cash — an acquisition aimed at better positioning the company against CRM platform competitors such as Oracle and Salesforce. Qualtrics was set to go public in the U.S.
Specializing in experience management, Qualtrics combines experience data and operational data to support business insights. Clients include Pandora Media Inc., Neiman Marcus Group, Crate & Barrel, CVS Pharmacy and Mastercard, among others.
Under the agreement, SAP, a German-based multinational software corporation with global reach in more than 180 countries and a global team of more than 95,000 members, has secured financing in “purchase price and acquisition-related costs” of Qualtrics.
The acquisition was approved by SAP’s board and Qualtrics’ shareholders and is expected to close within the first half of next year. It was advised by Qatalyst Partners and Goodwin Procter LLP. J.P. Morgan with Jones Day acting as legal adviser to SAP.
Speaking on the relevance of this acquisition between “like-minded innovators,” Ryan Smith, chief executive officer of Qualtrics, said it will aim to put experience management “everywhere, overnight.” Smith described joining the SAP team as a “once-in-a-generation opportunity to power the experience economy.”
In similar energy, SAP ceo Bill McDermott spoke of the collaboration as one that will both accelerate Qualtrics’ growth and further its mission by offering “global scale, reach and resources.”
“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,” McDermott said.
Qualtrics expects its full-year 2018 sales “to exceed $400 million and projects a forward growth rate of greater than 40 percent, not including potential synergies of being part of SAP.”
Aligning under this acquisition, Qualtrics and SAP expect continued efforts toward building fortified leadership and unifying personnel, branding and both company cultures.