SAP enters into agreement to acquire WalkMe, driving business transformation by enhancing the customer experience and enriching SAP business artificial intelligence (AI) offerings
COMPANY NEWS: SAP and WalkMe Ltd. have announced that the companies have entered into a definitive agreement under which SAP will acquire WalkMe, a leader in digital adoption platforms (DAPs).
WalkMe’s solutions help organisations navigate constant technology change by providing users with advanced guidance and automation features that enable them to execute workflows seamlessly across any number of applications. This results in higher adoption of the underlying application and, as such, drives value realisation.
The executive and supervisory boards of SAP SE and the board of directors of WalkMe have approved the transaction for US $14.00 per share in an all-cash transaction, representing an equity value of approximately US $1.5 billion. The offer price represents a 45 per cent premium to WalkMe’s closing share price on June 4, 2024.
The envisioned combination complements SAP’s Business Transformation Management portfolio around SAP Signavio and SAP LeanIX solutions to help customers on their transformation journeys.
Christian Klein, chief executive officer and member of the executive board, SAP SE, said, “Applications, processes, data and people are the four key elements 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 information technology (IT) investments.”
WalkMe: Focus on analysing adoption and business transformation
Dan Adika, chief executive officer, WalkMe, said, “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.
“By leveraging SAP’s extensive ecosystem, we are poised to unlock substantial growth opportunities and deliver even greater value to our customers. Together, we look forward to a future filled with innovation and exceptional service.”
WalkMe helps organisations boost enterprise productivity and lower risk by enabling consistent, effective and efficient use of software and the workflows it enables. Its DAP works on top of an organisation’s application landscape, detects where people encounter friction and provides the tailored support and automation they need to complete the job to be done, right in the flow of work, across any application. Importantly, WalkMe will continue to fully support non-SAP applications.
Soon, WalkMe will launch the WalkMeX copilot, which will use WalkMe’s contextual awareness and AI to suggest the best next step for any workflow, anywhere. WalkMeX has the capability to always be on, serving as an overlay to any application, including copilots from different vendors that companies use in their landscapes. Integrating the strength of WalkMe’s adoption capabilities with SAP’s copilot Joule will boost artificial intelligence (AI) assistant and productivity gains for all SAP customers. Additionally, integrating distinctive e-learning features in the SAP Enable Now solution with WalkMe will form the centre of SAP’s people-centric transformation approach going forward.
The acquisition is subject to customary closing conditions, including the receipt of WalkMe shareholder approval and necessary regulatory clearances, and is expected to close in the third quarter of 2024. The impact of the transaction on SAP’s non-IFRS earnings per share for fiscal 2024 is expected to be immaterial.
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About WalkMe
WalkMe (NASDAQ: WKME), headquartered in Tel Aviv, Israel, pioneered DAP innovations and solutions so companies can effectively navigate the constant change brought on by technology. With WalkMe, organisations drive enterprise productivity and reduce risk by ensuring consistent, responsible, and efficient adoption of software and the workflows it powers. Our AI-driven platform sits on top of an organisation’s tech stack, identifies where people experience friction, and delivers the personalised guidance and automation needed to get the job done right in the flow of work. Customers like IBM, Nestle, ThermoFisher Scientific, and the U.S. Dept. of Defense trust WalkMe to create the people-centric experiences required to boost the effectiveness of their workflows and maximise software ROI.
About SAP
As a global leader in enterprise applications and business AI, SAP (NYSE: SAP) stands at the nexus of business and technology. For over 50 years, organisations have trusted SAP to bring out their best by uniting business-critical operations spanning finance, procurement, HR, supply chain, and customer experience. For more information, visit www.sap.com.
