SAP said in a statement on Sunday local time that SAP would retain a majority stake in quartrics and give the company greater business autonomy under the leadership of existing executives, including founder Ryan Smith. After listing in the United States, Smith will become the largest individual shareholder of quartrics. He and his brother Jared founded quartrics in the basement of his parents home in Utah.
This decision marks a significant change in SAPs decision to acquire qualtrics for us $8 billion in November 2018. At that time, investors reacted coldly to the companys acquisition of quartrics, believing that the price was too high. The qualtrics acquisition is also the culmination of a $26 billion acquisition by bill McDermott, the former chief executive of sap, which also helped software giant SAP enter the fast-growing cloud computing software and services sector. Christian Klein, the new chief executive, has to compete with younger companies such as salesforce and workday, while managing the shrinking traditional software business.
McDermott defended the deal, arguing that combining SAPs employee and operational data with quartrics customer experience feedback would accelerate SAPs business. At present, the company has more than 11500 customers, and achieved revenue of 508 million euro (about 9.1 billion US dollars) in the latest financial year.
SAP said it would later decide when qualtrics will go public in the US depending on market conditions. As a major shareholder, the German company plans to continue to fully integrate its quartrics business and said it would not have an impact on its 2020 performance expectations.
SAP said earlier this month that although software licensing revenue in the second quarter was below normal, it recovered more than expected on the back of Asian software trading. The company will report full second quarter results on Monday. (Chen Chen)
Source: Wang Fengzhi, editor in charge of Netease science and Technology Report_ NT2541