SAP to Buy SuccessFactors in Deal Worth US$3.4bn

SAP America has entered into a definitive merger agreement with SuccessFactors, a provider of cloud-based human capital management (HCM) solutions in a deal worth approximately US$3.4bn. The acquisition will add SuccessFactors’ team and technology to SAP’s cloud assets, accelerating SAP’s momentum as a provider of cloud applications, platforms and infrastructure. The combination of SAP and SuccessFactors will establish an end-to-end offering of cloud and on-premise solutions for managing relevant business processes.

The transaction will be funded from SAP’s cash on hand and a €1bn term loan facility. The closing of the tender offer is conditioned on SuccessFactors stockholders tendering at least a majority of the outstanding shares of SuccessFactors common stock (on a fully diluted basis) and clearances by relevant regulatory authorities. The transaction is expected to close in the first quarter of 2012.

SuccessFactors has more than 3,500 customers in 168 countries and is headquartered in San Mateo, California.


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