SAP to snap up WalkMe in $1.5bn deal

5th Jun 2024 12:02

(Sharecast News) - German software giant SAP has agreed to buy WalkMe in a $1.5bn deal, it was confirmed on Wednesday, sending shares in the Israel-based firm soaring.

Under the terms of the all-cash deal, New York-listed SAP will pay $14 per share for WalkMe, a specialist in digital adoption platforms. The offer represents a 45% premium to WalkMe's closing share price on 4 June.

Chief executive Christian Klein said the deal would complement SAP's business transformation management portfolio of products.

He continued: "Applications, processes, data and people are the four key element of a successful business transformation."

"By acquiring WalkMe, we are doubling down on 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."

Dan Adika, chief executive of WalkMe, called the deal a "significant milestone".

He added: "By leveraging SAP's extensive ecosystem, we are poised to unlock substantial growth opportunities and deliver greater value to our customers."

The deal, which is subject to WalkMe shareholder approval and regulatory clearances, is expected to close in the third quarter of 2024.

As at 1300 BST, WalkMe's Nasdaq-listed shares had soared 42% in pre-market trading. SAP was largely flat on Wall Street but up 1% in Frankfurt.