On Sunday, the German database giant, SAP announced that it will be acquiring Qualtrics, which is management startup for $8 billion. Qualtrics was expected to raise funds by going public and issuing shares.
The company which was at its verge of IPO was expected to raise more than $495 million, would have had its mid-point of price range $18 to $21.
The company would have then gained a value of $4.8 billion. The CEO of Qualtrics, Ryan Smith stated in a press conference that the road-show was going well. The CEO of Sap was also present in the conference.
Smith further added the company had been positive on cash flow in its history even during the period of rapid growth and it was always reporting a net profit, therefore all these were the positive signs that the company would be very successful in the first day of trading after IPO.
In 2017, the company had generated revenue of $289.9 million which had increased by 52 percent since the previous in which the revenue generated was $190 million.
Smith also said that SAP had literally chased down Qualtrics and that it had been in talks since past few months.
Qualtrics will bring growth to SAP in the most rapidly growing sector of cloud software market. SAP is popular for its Enterprise Resource Planning (ERP) solutions being the largest seller of ERP solutions, giving tough competition to Oracle.
This acquisition will give an edge to SAP over other ERP service providing companies
Being the leader in the online research software market, Qualtrics has a brand name and it has been trying to re-position itself into the new emerging market of cloud computing services.
Source: BusinessInsider, ConsultantInsider
