SAP is acquiring Qualtrics, a provider of the experience management (XM) software category that helps organizations to thrive in today’s experience economy.
Together, SAP and Qualtrics aim to accelerate the new XM category by combining experience data and operational data to power the experience economy.
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.
“We continually seek out transformational opportunities,” said SAP CEO Bill McDermott . “Together, SAP and Qualtrics represent a new paradigm, similar to market-making shifts in personal operating systems, smart devices and social networks. “
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.
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.
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.
For more information about this news, visit www.sap.com.