SAP to acquire WalkMe in $1.5bn deal

September 2024 | DEALFRONT | MERGERS & ACQUISITIONS

Financier Worldwide Magazine

September 2024 Issue

In a deal that significantly strengthens its business transformation management portfolio, German software firm SAP is to acquire digital adoption platform (DAP) company WalkMe for approximately $1.5bn.

Under the terms of the definitive agreement, SAP will pay WalkMe $14 per share in an all-cash transaction – an offer which represents a 45 percent premium to WalkMe’s closing share price on 4 June 2024.

The transaction has been approved by the executive and supervisory boards of SAP and the board of directors of WalkMe.

A global leader in enterprise applications and business artificial intelligence (AI), SAP stands at the nexus of business and technology. For over 50 years, organisations have trusted SAP to bring out their best by uniting business-critical operations spanning finance, procurement, human resources, supply chain and customer experience.

“Applications, processes, data and people are the four key elements of a successful business transformation,” said Christian Klein, chief executive and member of the executive board of SAP. “By acquiring WalkMe, we are doubling down on the support we provide our end users, helping them to quickly adopt new solutions and features to get the maximum value out of their IT investments.”

SAP’s acquisition of WalkMe is designed to complement two other acquisitions SAP has made in the past few years. In 2021, it acquired fellow German firm Signavio, a business process automation company, for $1.2bn. And in late 2023, it bought another German company, LeanIX, which specialises in enterprise architecture management to help organisations modernise more quickly.

The WalkMe transaction follows a similar pattern to Signavio and LeanIX, insofar as it is about helping organisations transform for the modern software era, where people, AI and the cloud intersect.

“We are thrilled to join forces with SAP,” said Dan Adika, chief executive of WalkMe. “This acquisition marks a significant milestone in our journey, providing us with the resources and customer base necessary to enhance our product offerings and expand our market reach.”

Founded in 2011 and headquartered in Tel Aviv, Israel, WalkMe helps organisations boost enterprise productivity and lower risk by enabling consistent, effective and efficient use of software and the workflows it enables.

WalkMe’s DAP works on top of an organisation’s application landscape, detects where people encounter friction and provides the tailored support and automation they need to complete the job to be done, right in the flow of work, across any application. Following the completion of the transaction, WalkMe will continue to fully support non-SAP applications.

Customers such as IBM, Nestle, ThermoFisher Scientific and the US Department of Defense trust WalkMe to create the people-centric experiences required to boost the effectiveness of their workflows and maximise software return on investment.

The transaction – which is expected to close in the third quarter of 2024 – is subject to customary closing conditions, including the receipt of WalkMe shareholder approval and necessary regulatory clearances.

“By leveraging SAP’s extensive ecosystem, we are poised to unlock substantial growth opportunities and deliver even greater value to our customers,” concluded Mr Adika. “Together, we look forward to a future filled with innovation and exceptional service.”

Fraser Tennant