Enterprise IT company SAP AG (NYSE:SAP) is acquiring SuccessFactors for $3.4 billion or $40 per share. The transaction was made entirely in cash and is expected to close early next year. This is a 52% premium above Friday’s closing price.
?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,? stated SAP co-CEO Bill McDermott.
SuccessFactors is an employee management software companies that helps companies assess performance of employees. It also helps manage recruitment and human source needs for companies. SuccessFactors reported revenues of $91.2 million in the third quarter. SuccessFactors has over 3,500 customers spread across 170 countries.
Morgan Stanley served as the financial adviser for SuccessFactors and JPMorgan Chase advised SAP.