SAP (SAP) To Buy SuccessFactors (SFSF) For $3.4 Billion

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By Douglas A. McIntyre Published

Software giant SAP (NYSE: SAP) will buy US company SuccessFactor (NASDAQ: SFSF) for $3.4 billion. The price of $40, a 52% premium. The firm creates management and human resources software.

SAP will use cash on hand an a $1.3 billlion loan facility to close the deal, according to MarketWatch.

“The cloud is a core of SAP’s future growth, and the combination of SuccessFactors’ leadership team and technology with SAP will create a cloud powerhouse,” said Bill McDermott, co-chief executive of SAP. “The acquisition will help us address the top priority for CEOs globally — managing people and talent.”

SuccessFactors revenue in the most recently reported quarter was $91 million. It lost $26.5 million.

The buyout is at an amount which is close to SuccessFactors all-time high stock price. Shares are up over 100% in the last five years. But, the stock has sold off in the last several months.

SuccessFactors was founder in 2001 and is based in San Mateo

 

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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