SAP announced that it has completed its acquisition of Qualtrics International Incorporated that was to be finalised in early 2019.
Qualtrics is the global pioneer of the experience management (XM) software category that enables organizations to thrive in today’s experience economy. The combination accelerates the new XM category by combining Qualtrics’ experience data with operational data from SAP software to power the economy. SAP and Qualtrics will offer businesses the means to deliver exceptional customer, employee, product and brand experiences.
The acquisition was originally announced shortly 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. Qualtrics quickly withdrew their IPO paperwork after SAP expressed interest in acquiring the company.
Ryan Smith will continue to lead Qualtrics, which will retain its current leadership, personnel, branding and company culture and operate as an entity within the Cloud Business Group at SAP. Qualtrics will continue to maintain dual headquarters in Provo, Utah, and Seattle, Washington.
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.
Experience data (X-data) focuses on obtaining and tapping the value of outside-in customer, employee, product and brand feedback. Combining Qualtrics’ experience data and insights with unparalleled operational data (O-data) from SAP software will enable customers to manage supply chains, networks, employees and core processes better. Together, SAP and Qualtrics will deliver a unique end-to-end experience and operational management system to power the economy.
By combining forces with SAP’s extensive global sales force and client base, Qualtrics will be able to scale rapidly around the world. SAP has a strong track record of accelerating the growth of the innovative companies it acquires, as exemplified by the rapid success of SAP’s recent acquisitions.