It’s no small bit of change that German software giant SAP shelled out for SuccessFactors over the weekend: $3.4 billion. Analysts contend the price is very high, but it’s a wise decision by SAP. According to a Reuters report, DZ Bank analyst Oliver Finger says that “SuccessFactors could be a very good strategic fit for SAP in the cloud sector.” SAP is paying $40 a share for SuccessFactors, a U.S. Web-based services company. That’s a 52 percent premium. "We think it’s the right price. What we’ve seen in the past is [that] SAP has been pursuing positions where synergies come from the top line, and we see that happening here as well," SAP co-CEO Jim Hagemann-Snabe told CNBC. “The depth and experience that SAP brings to customers via our cloud and on-premise portfolio fit elegantly with SuccessFactors’ world-class expertise in providing high-performing, low-cost, native cloud applications that customers are passionate about,” says SAP Hagemann-Snabe. “Together, we will lead the industry in providing end-to-end solutions consistently to meet any deployment preference, whether on premise, in the cloud, or on device.” The deal can help SAP catch up with rivals — including Oracle — in cloud computing. Oracle purchased RightNow Technologies in October. While Oracle paid about 5.5 times RightNow’s forecast 2012 revenues, SAP is paying about eight times that for SuccessFactors’ forecast 2012 revenues.
Related posts
