Feeds

SAP fluffs up cloud biz with $3.4bn buy

SuccessFactors HR loveliness

Boost IT visibility and business value

SAP is shoring up cloud computing capabilities with the acquisition of SuccessFactors, a human resources software firm, for $3.4bn cash.

SAP is paying a hefty premium for SuccessFactors - some 52 per cent above the closing price on Friday, December 2 (the day before the acquisition was announced) and some 10 times revenues. But it has been slow to get its own software fully cloud-enabled (see our story about the long gestation to get SAP on to the cloud) and SuccessFactors is undeniably a substantial cloud player.

Based in California, SuccessFactors is perhaps the second-biggest pure play apps-in-the-cloud firm, behind only Salesforce.com. The company has 3,500 customers and 15 million users in 168 countries. Clients include Comcast and Siemens.

SuccessFactors is to be integrated into the SAP Business ByDesign portfolio and will help SAP better compete with arch-enemy Oracle in the race to the cloud. In October 2011, Oracle announced the $1.5bn acquisition of RightNow Technologies, a cloud provider of tech support and salesforce automation tools.

Lars Dalgaard, founder and CEO of SuccessFactors, will lead the cloud business of SAP in addition to his responsibility as CEO of SuccessFactors, which will remain a standalone unit.

Dalgaard said: “This is a revolutionary combination of proven capabilities that will allow SuccessFactors to accelerate our roadmap by 10 years, and bring the world’s leading application knowledge and intellectual property to our customers through the cloud, and the largest applications customer base instantly."

The transaction is expected to close in the first quarter of 2012. ®

Maximizing your infrastructure through virtualization

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.