Contact

SAP buys Qualtrics


, ,
Integral service around a transaction
BY : Diego GutiérrezDecember Tue, 2018

In our analysis of purchase of companiesToday we want to focus on the multinational SAP. On 11 November, the German company confirmed its investment to acquire Qualtrics, a developer of business software.

The ERP sector is booming thanks to falling implementation costs, growing functionality, and increasingly stringent regulation, favouring the implementation of ERPs.

SAP and ERP

SAP is one of the world's largest companies in the Enterprise Resource Planning (ERP) sector and is listed on the Frankfurt Stock Exchange and the New York Stock Exchange (NYSE). Its main competitor is Oraclefollowed by others such as Microsoft or Sage.

SAP is widely accepted by medium and large enterprises because of its ability to customise without limits, thanks to the implementation of ERP systems that allows consultants to optimise the functions for each customer tailoring the product to your needs.

ERPs are integrated computer programmes that optimise and monitor the company's different supply, production, sales and logistics processes, among others. This streamlines processes, avoiding duplicate invoices and facilitating the monitoring of the correct functioning of the company in a simple way.

These programmes are used by companies such as public administrations, but due to the cost of licensing and implementation, they are normally used by medium to large companies.

The ERP industry is growing at a rapid pace, thanks to the increasing digitisation of processes and regulatory requirementsThe use of ERP is almost a necessity in certain sectors.

SAP currently has a market capitalisation of around €115bn and believes it can reach €250bn in the next few years if the industry continues to grow and if the company itself continues to grow inorganically.

SAP acquires Qualtrics

On 11 November last year, SAP decided to buy the company Qualtrics before the IPO. The purchase of Qualtrics' 100% has closed for €8bn in cash, well above the €4.5bn valuation had it gone public.

Qualtrics is a company dedicated to the creation of software for the development of surveys, market research applications and feedback development.

SAP's acquisition of Qualtrics was motivated by the following factors:

  • the expertise The company's role in the development of real-time information analysis.
  • the analytical capacity of large amounts of data in real time.
  • the ability to grant a instant feedback.

The deal's multiple is 20x this year's expected sales, a very high multiple that is underpinned by SAP's strategy to enter the digital cloud business and to start offering customer experience services to its existing customer base.

Our diferentiation

Market Research Technology
Our team of market analysis specialists is continuously analyzing the investments of the most active markets in the industry in order to unceasingly contribute ideas of the current market situation and identify the most relevant trends for senior management. We integrate the most relevant sources of information which allows us to discover the most interesting companies for venture capital and similarly helps us to identify the investors with the highest probability of involvement in an M&A process to ensure the success of our sell-side operations.

The reports and deductions of our advisors provide a broad view of the sector, both geographically and from the complementary or adjacent markets perspective.
Technology Data Analytics
for M&A
Advanced data anlytics is a weapon". Intelfin is an artificial intelligence tool we use for investing and creating value in SMEs through competitive analytics and the enterprise environment.

IntelFin consists of a cognitive system, which, through the application of advanced analytical technologies, facilitates the automation of investment and financing decisions in the field of non-listed companies and especially SMEs in high-growth sectors.

The information related to these companies is characterized by their lack of transparency and heterogeneity; thus, it is necessary to develop an advanced analysis which is as much predictive as prescriptive and is developed in a natural language custom, suitable to obtain greater clarity and knowledge of the investment scope.

The IntelFin system focuses especially on analyzing the variables that define and influence the competitive environment of a sector and the positioning of a company, analyzing their influence on future value creation. Therefore, IntelFin supports strategic decision-making to senior management by resolving questions such as:

¿What are my competitors' priorities, strategies and expansion plans? Who's my competition? Which competitor is most likely to grow at a higher rate?
Which areas of activity/business models will receive the most investment? Which sectors are most attractive to investors?
Which companies are going to experience the most growth in the near future? Which companies are most likely to receive investment or be acquired?
Training Methodology
We have developed training programs in an innovative set-up which guarantees our teams the acquisition of technical competences both in the field of corporate finance and in the field of psychology, that is much needed when it comes to negotiation processes.

We have a culture of continuous improvement of our processes, closely related to the use of information systems that allow the enhancement of internal communication between our teams, as well as external communication with our customers. Hence, we extend best practices identified internally in an efficient and rapid manner among our members.

Are you one of those who prefer to be well informed when making decisions?

M&A NEWS
INDUSTRIAL REPORTS
closearrow-circle-o-downchevron-downcrossmenu