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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