The acquisition of Callidus will boost SAP’s position in the CRM market.
SAP has agreed to acquire sales performance software vendor Callidus Software in a $2.4bn cash deal.
The acquisition of Callidus Software, which trades as CallidusCloud, will help SAP to complete and differentiate its portfolio of products.
‘These two strong companies will be better together, help the world run better and improve people’s lives’
– BILL MCDERMOTT
The German IT giant intends to integrate CallidusCloud’s Lead to Money suite into its customer engagement CRM suite.
SAP will purchase Callidus for $36 per share, a 21pc premium on the company’s average price per share over a 90-day period.
SAP has elected to fund the transaction with existing cash balances and an acquisition term loan.
The transaction is expected to close in the second quarter of 2018, subject to approval from CallidusCloud stockholders and, of course, regulatory approval.
A bright future for sales?
“SAP is connecting the back office to the front office in this consumer-driven growth revolution,” said Bill McDermott, CEO of SAP.
“Our customers are focused on reinventing sales, service, marketing and commerce. The addition of CallidusCloud aligns perfectly to SAP’s innovation strategy to transform the front office.
“SAP gives CallidusCloud the global scale to accelerate its already impressive growth. These two strong companies will be better together, help the world run better and improve people’s lives.”
Callidus Software was founded in Dublin, California, in 1996 by Andrew Swett and Scott Kitayama to provide enterprise incentive management systems.
It went public on Nasdaq in 2003, raising $70m at the time.
“This move gives customers precisely what they want: the market leading sales performance, sales execution and sales enablement clouds combined with SAP Hybris and S/4HANA,” said CallidusCloud CEO Leslie Stretch.
“This is true Lead to Money, beyond CRM and beyond quote-to-cash. It’s the joined-up front office and back-office cloud everyone needs for 21st-century business.”