TechCrunch Disrupt SF 2015 witness Ryan Smith of Qualtrics addressing the audience.
SAP that is an Enterprise software giant made an announcement about its agreement to buy Qualtrics for $8B in cash. This came in right before Qualtrics, a survey and research software firm was set to go public. The deal is expected to materialize in the beginning months of 2019. The last round of VC funding for Qualtrics in 2016, raised $180M at a valuation of $2.5B.
This follows Oracle’s takeover of Netsuite for $9.3B as the second largest takeover of a SAAS company.
Bill McDermott who is the CEO of SAP said in a conference call that the discussions began several weeks ago between the two companies and the Qualtrics IPO was oversubscribed. Based on SAP’s claims, the reach of its software in nearly 77% of the transaction revenue of the world. On the other hand, it states that Qualtrics’ offerings encompass survey software that has a user base of nearly 9000 enterprise users. The survey softwares helps the userbase to adjudge things such as customer sentiments and employee motivation and engagement.
McDermott also made a comparison of the probable impact of bringing together the operational data from SAP with the user and customer data from SAP to Facebook’s takeover of Instagram.
He also claimed that they have replaced the existing participants in the market that did not leave their technology from the 90s in the 21st century. The major competitors for SAP are Oracle, Salesforce, Microsoft and IBM.