SAP is buying survey software maker Qualtrics

SAP is buying survey software maker Qualtrics for $8 billion just before the US company was set to go public… The acquisition comes as SAP, Germany’s largest company by market value, is shifting its enterprise software business to the cloud from traditional on premises services, with the goal of becoming a one-stop shop for all digital offerings… SAP is the latest legacy enterprise software company to make a big acquisition in hopes of adapting to a changing market. Two weeks ago, IBM said it would buy open-source software pioneer Red Hat for $34 billion, in the tech industry’s biggest deal this year, topping Microsoft’s $7.5 billion acquisition of GitHub in June. Qualtrics sells market research and survey software, a field known as experience management, to more than 9,000 customers, from Coca-Cola and BMW to the US Air Force and Walt Disney. Its competitors include SurveyMonkey, which went public in September in an initial public offering that valued it at $1.25 billion, a steep discount to its last private valuation. The all-cash purchase price offered by SAP is a hefty premium to the $2.5 billion Qualtrics was valued at in its last private funding round in April 2017.

Shannon Bond