SAP Looks To SuccessFactors For Success In The Cloud
By The 451 Group: Inorganic Growth:
By Brenon Daly
After struggling for years to build its own on-demand offering, SAP (SAP) plans to buy its way into cloud-based software, handing over $3.65bn for SuccessFactors (SFSF) in what would be the largest-ever SaaS acquisition. The deal combines the largest ERP vendor, which has some 500 million users, with the fast-growing human capital management (HCM) provider. However, the acquisition, which is slated to close in the first quarter of next year, does face some challenges. J.P. Morgan Securities advised SAP on the transaction, while Morgan Stanley banked SuccessFactors, after leading its IPO four years ago. SAP, which is 30 years older than SuccessFactors, has consistently pulled back the targets for its Business ByDesign SaaS suite since it started talking about it a half-decade ago. The difficulty in moving more quickly into a subscription-based software model is underscored by the fact that even after it drops $3.65bn to makeComplete Story »
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