The market leader in enterprise application software has entered into an agreement to purchase a data solutions provider in a deal worth around $8bn.
SAP announced in a statement this week that it has entered into an agreement to acquire the global pioneer of experience management software, Qualtrics, for $8bn in cash.
Under the deal, SAP and Qualtrics will work together to deliver the ‘transformational potential’ of Experience Data (x-data) combined with operational data (o-data).
X-data is a platform that collects, manages and acts on experience data and is used by over 9,000 enterprises worldwide, including 75% of the Fortune 100.
“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,” said SAP in a statement.
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.
“We continually seek out transformational opportunities – today’s 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,” said SAP CEO Bill McDermott.
““The combination of Qualtrics and SAP 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.”