Qualtrics is a company that fits in the experience management (XM) software category. The organisation enables businesses to thrive in today’s experience economy.
Under the terms of the agreement, SAP will acquire all outstanding shares of Qualtrics for US$8 billion in cash.
Subject to customary closing conditions and attainment of regulatory clearances, the acquisition is expected to close in the first half of 2019. The Boards of Directors of SAP and Qualtrics have approved the transaction. Qualtrics’ shareholders have also approved the transaction.
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The experience economy
Qualtrics is the technology platform that organisations use to collect, manage, and act on experience data, also called X-data.
The purpose of the acquisition? The Qualtrics XM Platform is a system of action, used by teams, departments, and entire organisations to manage the four core experiences of business —customer, product, employee and brand — on one platform.
Over 9,000 enterprises worldwide, including more than 75% of the Fortune 100 and 99 of the top 100 US business schools, rely on Qualtrics to consistently build products that create more loyal customers, develop a phenomenal employee culture and build iconic brands.
The Goodwin team advising Qualtrics is led by partners Anthony McCusker, Lawrence Chu, Mike Russell, and Alessandra Simons, and associates Matt McCoy, Elizabeth Telefus, Kristen Gerber, John Casnocha, Ava Vilhauer, Yifan Yang, and John Horton.
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SAP CEO Bill McDermott said: “We continually seek out transformational opportunities – today’s announcement is exactly that. Together, SAP and Qualtrics represent a new paradigm, similar to market-making shifts in personal operating systems, smart devices and social networks. SAP already touches 77% of the world’s transactions. When you combine our operational data with Qualtrics’ experience data, we will accelerate the XM category with an end-to-end solution with immediate global scale. For Qualtrics, this introduces a dynamic new partner with the belief, passion and scale to bring experience management to millions of customers around the world.”
McDermott added: “The combination of Qualtrics and SAP reaffirms experience management as the groundbreaking new frontier for the technology industry. SAP and Qualtrics are seizing this opportunity as like-minded innovators, united in mission, strategy and culture. We share the belief that every human voice holds value, every experience matters and that the best-run businesses can make the world run better. We can’t wait to stand beside Ryan and his amazing colleagues for the next chapters in the experience management story. The best for Qualtrics and SAP is yet to come!”
Ryan Smith, CEO of Qualtrics, said: “Our mission is to help organizations deliver the experiences that turn their customers into fanatics, employees into ambassadors, products into obsessions and brands into religions. Supported by a global team of over 95,000, SAP will help us scale faster and achieve our mission on a broader stage. This will put the XM Platform everywhere overnight. We could not be more excited to join forces with Bill and the SAP team in this once-in-a-generation opportunity to power the experience economy.”
Prior to today’s announcement, Qualtrics was scheduled to consummate an initial public offering of its Common Stock later this week. SAP CEO, Bill McDermott, said in a conference call that the Qualtrics IPO was already over-subscribed.