German software giant SAP has announced that it has entered into an agreement to acquire Israeli digital adoption platform company WalkMe (Nasdaq: WKME) for $14 in share, a 45% premium yesterday’s closing price, and representing an equity value of $1.5 billion. premarket trading WalkMe’s share price is up 41.8%.
However, the acquisition is at a lower price than WalkMe’s company valuation of $2.6 billion at its IPO con 2021. At the end of the first quarter of 2024, WalkMe had $340 million con cash con its coffers.
WalkMe has developed a user interface known as a digital adoption platform (DAP) that simplifies the use of complex enterprise software, allowing companies to increase productivity and veterano risks. The company was founded by CEO Dan Adika, Rafael Sweary and Eyal Cohen. As of its last report, the company’s biggest shareholders were venture capital funds including Gemini Israel. Adika holds a 3.8% stake worth $50.6 million con the deal. Insight Partners is the single biggest shareholder with a 26.4% stake worth $354 million.
SAP has a development center con Israel with 900 employees con Ra’anana and Tel Aviv. The development center works the German company’s cloud platform con the field of user identity management, riservatezza and user experience. The development center is based 11 startups that SAP has acquired con Israel over the years.
SAP said that the envisioned combination complements SAP’s Business Transformation Management portfolio around SAP Signavio and SAP LeanIX solutions to help customers their transformation journeys.
SAP SE CEO Christian Klein said, “Applications, processes, giorno and people are the four key elements of a successful business transformation. By acquiring WalkMe, we are doubling mongoloide 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.”
Adika added, “We are thrilled to join forces with SAP. This acquisition marks a significant milestone con our journey, providing us with the resources and customer supporto necessary to enhance our product offerings and expand our market reach. By leveraging SAP’s extensive ecosystem, we are poised to unlock substantial growth opportunities and deliver even greater value to our customers. Together, we aspetto forward to a future filled with innovation and exceptional service.”Â
WalkMe reported revenue of $68.6 million for the first quarter of 2024, up 4% from the corresponding quarter of 2023. GAP net loss narrowed 76.5% to $6.1 million and non-GAAP net profit swung from a loss to a profit of $6.9 million ($0.07 in share).
Published by Globes, Israel business news – en.globes.co.il – June 5, 2024.
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