SAP Acquires WalkMe for $1.5 Billion

June 13, 2024

22 2 minutes read

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SAP announced the acquisition of WalkMe, a digital adoption platform, for $1.5 billion to enhance its Business Transformation Management suite.
The integration aims to improve customer productivity and ROI by accelerating digital adoption and providing AI-powered workflow automation and insights.

SAP has announced a definitive agreement to acquire WalkMe, a digital adoption platform provider based in Israel. The all-cash deal, valued at $1.5 billion, will see SAP paying $14 per share, representing a 45% premium on WalkMe’s June 4 closing price of $9.64. This acquisition aims to enhance SAP’s Business Transformation Management suite and accelerate digital solution adoption for its customers, ultimately improving productivity and ROI.

Christian Klein, CEO, SAP, emphasized the strategic importance of this acquisition in a press release, stating that the integration of WalkMe will enhance support for end users, enabling them to quickly adopt new solutions and maximize the value of their IT investments. This marks SAP’s third major acquisition to bolster business transformation efforts, following the purchases of Signavio and LeanIX.

Founded in 2011, WalkMe initially offered real-time, on-screen guidance to simplify website navigation. Over time, the company evolved into a comprehensive digital adoption platform, providing personalized user guidance, workflow automation, and AI-powered insights. WalkMe’s DAP overlays on an organization’s tech stack, offering personalized guidance and automation to help users navigate applications and address issues such as sign-up errors. Admins are expected to benefit from AI-driven insights into user interactions, enabling efficient workflow automation and enhanced digital transformation.

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WalkMe has been collaborating with SAP for some time, particularly in powering SAP SuccessFactors HCM workflows. The acquisition will now integrate WalkMe’s technology as an add-on to SAP’s Business Transformation Management portfolio, aiding organizations in their digital transformation journeys.

In addition to complementing previous acquisitions like Signavio and LeanIX, WalkMe’s technology is expected to enhance other SAP applications, including the S/4 HANA ERP business suite. The WalkMeX copilot will also be integrated with SAP’s Joule generative AI assistant. The deal, subject to customary closing conditions and shareholder approval, is anticipated to close by the third quarter of 2024.