SAP Completes Sale of Its Stake in Qualtrics as Silver Lake and CPP Investments Complete Qualtrics Acquisition (2024)

FAQs

Why did Silver Lake buy Qualtrics? ›

“Silver Lake's deep understanding of our business and vision for experience management, combined with their strategic and operational expertise and the support of our other investors, creates an incredible opportunity for Qualtrics to accelerate our innovation and category leadership.”

SAP to focus on its core products

SAP's decision to sell the entirety of its stake in Qualtrics is a result of the company's strategy pivot to focus on its core offerings, mainly S/4HANA.

With the completion of the transaction, Qualtrics stockholders, including SAP, are entitled to receive $18.15 in cash for each share of Qualtrics common stock they owned.

Qualtrics International has agreed to go private at $18.15 a share in a $12.5 billion all-cash deal led by the private-equity firm Silver Lake in partnership with the Canada Pension Plan Investment Board. The deal for Qualtrics (ticker: XM) comes just a week after Silver Lake announced the offer.

Silver Lake Resources Limited's analyst rating consensus is a Strong Buy.

Private equity firm Silver Lake is taking Endeavor private in a deal that values the sports, entertainment and talent management agency to be acquired at an equity value of US$13 billion.

SAP Remains A Strategic Partner

The sale of Qualtrics will add to SAP's operating cash flow as it pivots towards being primarily a cloud-based Software-as-a-Service ERP provider. A close strategic relationship including cross-selling opportunities between SAP and Qualtrics will remain in place.

In a report on its positive fourth quarter financial results on Thursday, SAP shared details on plans to reduce its global workforce by thousands, refocus on its core business ventures and put its 71% share of Qualtrics stock up for sale.

SAP employee experience management solutions by Qualtrics provide organizations with the insights and tools to continuously improve the employee experience across HR and other areas of the business.

Kindly note, Qualtrics International, Inc. will be removed from below index following its acquisition by Silver Lake in partnership with Canada Pension Plan Investment Board (CPP Investments).

What does Silver Lake own? ›

Silver Lake Group, L.L.C.'s top holdings are Endeavor Group Holdings, Inc. (US:EDR) , First Advantage Corporation (US:FA) , Unity Software Inc.

By selling its stake in Qualtrics, SAP is able to unlock value for its shareholders and streamline its operations to better align with its long-term plans — a shift in focus to cloud-based software and services.

Qualtrics International Inc.'s Zig Serafin ranked as the second-highest paid CEO with total adjusted compensation of $540.5 million, of which $540 million came in the form of stock awards granted effective Feb. 1, after the completion of Qualtrics' IPO.

Qualtrics has laid off 14 percent of its workforce as part of an organizational restructure. The VoC stalwart follows many other CX tech juggernauts in making layoffs in 2023.

“We have long admired Splunk's world-class team and technology, and we believe the company is now at an important inflection point,” said Kenneth Hao, Chairman and Managing Partner of Silver Lake.

Transaction Details

The transaction is fully financed by equity commitments from Silver Lake and co-investors together with $1.75 billion in equity from CPP Investments and $1 billion in debt.

In 2018, German software giant SAP acquired Qualtrics for $8 billion, making Smith and his co-founders instant billionaires.