Walldorf, Germany & San Mateo, Calif. — Dec. 3
SAP AG and SuccessFactors Inc. announced that SAP's subsidiary SAP America Inc. has entered into a merger agreement with SuccessFactors, a provider of cloud-based human capital management (HCM) services. The deal is pursuant to which a subsidiary of SAP would offer to acquire all outstanding shares of common stock of SuccessFactors for $40 per share in cash, representing an enterprise value of roughly $3.4 billion.
The acquisition will add SuccessFactors' team and technology to SAP's powerful cloud assets, significantly accelerating SAP's momentum as a provider of cloud applications, platforms and infrastructure.
The combination of SAP and SuccessFactors will establish an advanced end-to-end offering of cloud and on-premise solutions for managing all relevant business processes, the company said in a release.
The SuccessFactors board of directors has unanimously approved the transaction. The per share purchase price represents a 52 percent premium both over the Dec. 2 closing price and the one month volume weighted average price per share.
The transaction will be funded from SAP's cash on hand and a euro 1 billion term loan facility. The closing of the tender offer is conditioned on SuccessFactors stockholders tendering at least a majority of the outstanding shares of SuccessFactors common stock and clearances by relevant regulatory authorities.
The transaction is expected to close in the first quarter of 2012 and be slightly dilutive to SAP's Non-IFRS earnings per share in 2012 and accretive in subsequent years.
The acquisition marks another stride in SAP's strategy of delivering services on premise, in the cloud and on mobile devices. It builds on a series of strategic moves in SAP's targeted growth areas to drive innovation in its core applications and analytics; introduce breakthrough in memory technology; establish leadership in enterprise mobility; and grow its cloud portfolio.
"The acquisition will help us address the top priority for CEOs globally — managing people and talent," said Bill McDermott, Co-CEO, SAP. "Together, SAP and SuccessFactors will create tremendous business value for customers, with potent synergies to accelerate our growth in the cloud."
With more than 3,500 customers in 168 countries, SuccessFactors is growing rapidly, recording 77 percent revenue growth year-over-year in the third quarter 2011 and 59 percent revenue growth year-over-year in the first nine months of 2011, according to the company.Source: SAP AG