SAP has announced its intention to acquire cloud vendor Callidus Software for $2.4bn (£1.7bn).
The Nasdaq-listed vendor based in California claims to be the global leader in cloud-based sales, marketing, learning and customer experience solutions. SAP says the deal will grant "immediate leadership" in the Lead to Money space, which includes sales performance management (SPM) and configure-price-quote (CPQ) tools.
The deal has been unanimously approved by Callidus Software's board of directors, and comprises a per-share purchase price of $36 - a 21 per cent premium on the average price of Callidus over a 30-day period.
SAP expects to close the transaction in the second quarter of 2018 and is forecasting the acquisition to be neutral to its earnings per share in 2018, but accretive to full-year 2019.
"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," said SAP's CEO Bill McDermott.
The announcement comes alongside SAP filing its Q4 and 2017 results which saw total revenues grow by eight per cent in constant currencies to €23.46bn (£20.64bn) for the year. The software vendor shone a light on its cloud subscription business, which leapt by 28 per cent during the year to €3.77bn, while new cloud bookings grew by 30 per cent in constant currencies to €1.45bn.
Operating profit meanwhile grew by four per cent year on year to €6.77bn.
By 2020, SAP is aiming for €8bn to €8.5bn in cloud subscriptions and support revenue, operating profits of €8.5bn to €9bn, and up to €29bn total revenues.
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