SAP to Acquire Digital Adoption Platform WalkMe for $1.5 Billion

SAP to Acquire Digital Adoption Platform WalkMe for $1.5 Billion

Enterprise software giant SAP announced on Wednesday its agreement to acquire WalkMe, a leading digital adoption platform (DAP) provider, for $1.5 billion in an all-cash transaction. SAP's offer of $14 per share represents a significant premium of approximately 45% over WalkMe's closing price of $9.64 on Tuesday.

The acquisition, approved by the boards of both companies, is expected to close in the third quarter of 2024 (subject to customary closing conditions), including WalkMe shareholder approval and necessary regulatory clearances.

WalkMe, headquartered in Tel Aviv, Israel, has pioneered innovations in the DAP space, helping organizations navigate the constant change brought about by digital transformation. The company's AI-driven platform sits on top of an organization's existing technology stack, identifying areas where users experience friction and providing personalized guidance and automation to streamline workflows across applications.

SAP CEO Christian Klein emphasized the importance of the acquisition, stating, "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."

The combination of WalkMe's capabilities with SAP's extensive ecosystem is expected to provide customers with an end-to-end solution for transforming their businesses and realizing the full potential of generative AI (GenAI). WalkMe's upcoming launch of WalkMeX, a copilot that leverages contextual awareness and AI to suggest the best next steps for any workflow, will be directly integrated into SAP's own copilot, Joule, to boost boost productivity for its customers.

Dan Adika, CEO of WalkMe, expressed enthusiasm for the acquisition, saying, "We are thrilled to join forces with SAP. This acquisition marks a significant milestone in our journey, providing us with the resources and customer base necessary to enhance our product offerings and expand our market reach."

Both companies have affirmed their commitment to supporting customers across all applications, including non-SAP solutions, and have stated that the acquisition will not result in changes to existing account management, customer success, services, and support teams.

The impact of the transaction on SAP's non-IFRS earnings per share for fiscal 2024 is expected to be immaterial.

Chris McKay is the founder and chief editor of Maginative. His thought leadership in AI literacy and strategic AI adoption has been recognized by top academic institutions, media, and global brands.

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