SAP Completes Acquisition of WalkMe

Rhea-AI Summary

SAP SE has completed its acquisition of WalkMe , a digital adoption platform company, for an equity value of approximately US$1.5 billion. The deal offers WalkMe shareholders US$14.00 per share, representing a 45% premium to WalkMe's closing price on June 4, 2024. WalkMe's Nasdaq-listed shares will be suspended and delisted.

This acquisition aims to enhance SAP's offerings by integrating WalkMe's technology, which improves user experience and adoption across business software applications. Notably, WalkMe's AI capabilities will enhance SAP's copilot Joule with context-aware and proactive assistance, potentially boosting user productivity across workflows.

Positive

• Acquisition valued at US$1.5 billion, representing a 45% premium for WalkMe shareholders
• Integration of WalkMe's technology expected to enhance SAP's product offerings
• WalkMe's AI capabilities to improve SAP's copilot Joule with context-aware assistance
• Potential for increased user productivity across workflows

Negative

• Delisting of WalkMe from Nasdaq may affect its market visibility
• Significant cash outlay of US$1.5 billion for SAP

Insights

Financial Analyst

SAP's acquisition of WalkMe for $1.5 billion is a strategic move to enhance its digital adoption capabilities. The 45% premium paid signals SAP's strong belief in WalkMe's value proposition. This acquisition is likely to:

• Boost SAP's competitive edge in the enterprise software market
• Improve user adoption rates for SAP's products, potentially leading to higher customer retention and satisfaction
• Enhance SAP's AI-driven solutions, particularly its copilot Joule

However, investors should consider the integration challenges and the time it may take to realize synergies. The $14.00 per share price might impact SAP's short-term financials, but could yield long-term benefits if executed well.

Tech Expert

The integration of WalkMe's digital adoption platform with SAP's ecosystem is a significant technological advancement. Key points to consider:

• WalkMe's AI capabilities will enhance SAP's Joule copilot, potentially revolutionizing user experience across SAP's product suite
• This move aligns with the industry trend towards more intuitive, AI-driven enterprise software solutions
• The acquisition could accelerate SAP's digital transformation initiatives, helping clients adapt to new technologies more efficiently

While promising, the success will depend on seamless integration and effective leveraging of WalkMe's technology within SAP's existing infrastructure.

Market Research Analyst

This acquisition positions SAP strongly in the digital adoption platform (DAP) market, which is experiencing rapid growth. Key insights:

• The DAP market is projected to expand significantly, driven by digital transformation trends
• By acquiring WalkMe, SAP eliminates a potential competitor and gains a market-leading position in this space
• This move could attract new customers, especially those prioritizing user adoption and experience in their digital strategies

However, SAP must navigate potential challenges, such as retaining WalkMe's talent and maintaining its innovation pace. The success of this acquisition will likely influence SAP's market share and competitive positioning in the coming years.

WALLDORF, Sept. 12, 2024 (GLOBE NEWSWIRE) -- SAP SE (NYSE: SAP) today announced it has successfully completed its acquisition of WalkMe Ltd., a leading digital adoption platform company listed on the Nasdaq Global Select Market (NASDAQ: WKME). WalkMe's innovative technology enables seamless workflow execution across business software applications, improving user experience and adoption and supporting business transformation. WalkeMe^X’s AI capabilities will supercharge SAP's copilot Joule with context-aware and proactive help across workflows, allowing users to become more productive.

As a result of the acquisition, each ordinary issued and outstanding share of WalkMe Ltd. has been converted into the right for its shareholders to receive US$14.00, subject to adjustment, per share in cash. The completion of the acquisition has been duly reported to the Nasdaq Stock Market, and trading of WalkMe's ordinary shares is expected to be suspended at the close of market today pending delisting. With an equity value of about US$1.5 billion, this represents an approximate 45% premium to WalkMe's closing share price on June 4, 2024, the day SAP and WalkMe agreed to binding terms of the acquisition.

Visit the SAP News Center. Follow SAP at @SAPNews.

For more information, financial community only:
Alexandra Steiger, +49 6227-7-60437, investor@sap.com, CEST

For more information, press only:
Joellen Perry, +1 650-445-6780, joellen.perry@sap.com, PT
Daniel Reinhardt, +49 6227-7-40201, daniel.reinhardt@sap.com, CEST
Ofir Bloch, press@walkme.com

SAP Press Room; press@sap.com

This document contains forward-looking statements, which are predictions, projections, or other statements about future events. These statements are based on current expectations, forecasts, and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes to materially differ. Additional information regarding these risks and uncertainties may be found in our filings with the Securities and Exchange Commission, including but not limited to the risk factors section of SAP’s 2023 Annual Report on Form 20-F.

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FAQ

What is the acquisition price for WalkMe (WKME) by SAP?

SAP is acquiring WalkMe (WKME) for US$14.00 per share, valuing the company at approximately US$1.5 billion.

How does the acquisition price compare to WalkMe's (WKME) previous stock price?

The acquisition price represents a 45% premium to WalkMe's closing share price on June 4, 2024, when SAP and WalkMe agreed to binding terms.

What will happen to WalkMe's (WKME) stock after the SAP acquisition?

WalkMe's (WKME) shares will be suspended from trading on Nasdaq at the close of market on September 12, 2024, and will be delisted following the completion of the acquisition.

How will SAP integrate WalkMe's technology into its existing products?

SAP plans to use WalkMe's AI capabilities to enhance its copilot Joule, providing context-aware and proactive help across workflows to improve user productivity.