SAP will acquire Qualtrics International, a developer of experience management for an estimated $8 billion. The boards for SAP and Qualtrics and their shareholders have approved the deal in November of 2018. The companies expect to complete the acquisition in the first half of 2019.
Early 2019 Acquisition
Qualtrics was founded in 2002. To this day, Qualtrics is a privately held experience management company, with co-headquarters in Provo, Utah and Seattle, Washington, in the United States. Qualtrics’ subscription based survey software is used by businesses to track customer and employee experiences and obtain feedback on products and brands. The company has over 9,000 customers globally.
The news of the acquisition comes two days after Qualtrics, filed S-1 documents with the U.S. Securities and Exchange Commission to go public with an IPO carrying an estimated valuation of $4.8 billion. The acquisition should be complete in the first half of 2019.
The acquisition is an opportunity to combine Qualtrics’ customer experience data with operational data generated by SAP’s ERP and CRM applications to provide managers and executives with deeper insights about their businesses. This union will help organisations better manage supply chains, networks, employees and core processes.
Possible Product Integration
SAP is expected to integrate Qualtrics software with some of its software products, including C/4HANA suite of CRM applications. That product set is itself made up of several SAP acquisitions including Callidus Software.
SAP SuccessFactors, the employee talent management application, is another potential application primed for integration with Qualtrics’ applications.
When the acquisition is complete in the beginning of 2019, Qualtrics will operate as an entity within SAP’s Cloud Business Group. Qualtrics will maintain its leadership and personnel: Ryan Smith, one of Qualtrics’ founders and current CEO, will continue to lead the company. It will also maintain its dual headquarters in Provo, Utah and Seattle, Washington.