Software company SAP is set to buy Qualtrics International for $8 billion in cash, aimed at adding its $400 million revenue to its kitty.
This is SAP’s biggest deal since it bought travel and expense management firm Concur Technologies in 2014 for $8.3 billion, Reuters reported.
Qualtrics earlier filed for an IPO of $200 million. Qualtrics was valued at $2.5 billion in a 2017 private funding round and its customers include Microsoft, JetBlue Airways and General Electric, Bloomberg reported.
The strategy of SAP CEO Bill McDermott is aimed at expanding into Customer Relationship Management (CRM) from its core of helping firms run their finance, logistics and human resources.
US-based Qualtrics expects revenues to exceed $400 million this year, and projects a forward growth rate of greater than 40 percent, not including potential synergies that might arise from being part of SAP.
Germany-based SAP expects revenues to grow this year by 7.5 to 8.5 percent to more than 25 billion euros or $28 billion.
Qualtrics collects feedback and data on customers, employees, products and brands for 9,000 businesses worldwide, providing real-time insights that are vital in an increasingly digital world.
“Already 77 percent of transactions are through SAP systems. If we combine our operating data with the data of experience Qualtrics, we create immediately a new XM-category with an end-to-end solution with global reach,” Bill McDermott, CEO of SAP, said.
SAP has 413,000 customers worldwide.
“Over 95,000 SAP employees help us to grow faster and to reach the next milestone in our mission,” Ryan Smith, CEO of Qualtrics, said. Ryan Smith retains his position as CEO of Qualtrics. Qualtrics will also retain the corporate headquarters in Provo, Utah, and Seattle, Washington.