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The acquisition of Qualtrics was a strategic move on SAP's side to enhance its experience management capabilities. [shutterstock: 740139466, totojang1977]
[shutterstock: 740139466, totojang1977]
Management Press Release

Experience Management: SAP To Acquire Qualtrics

SAP and Qualtrics announced they have entered into a definitive agreement under which SAP intends to acquire Qualtrics, the global pioneer of the experience management (XM) software category that enables organizations to thrive in today’s experience economy.

Under the terms of the agreement, SAP will acquire all shares of Qualtrics for 8 billion U.S. dollar 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.

New paradigm with Qualtrics

SAP CEO Bill McDermott said: “We continually seek out transformational opportunities – the 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. When you combine our operational data with its experience data, we will accelerate the XM category with an end-to-end solution. For Qualtrics, this introduces a dynamic new partner with the scale to bring experience management to customers around the world.”

McDermott added: “The combination of the two companies 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 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 best possible experiences. Supported by a global team, SAP will help us scale faster and achieve our mission. 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.”

Operational 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.

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.

Source:
SAP

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