SAP buys SuccessFactors in $3.4bn deal

Summary:The Germany company is buying management software firm SuccessFactors with the help of a €1bn credit line

SAP said on Saturday that it will buy management software firm SuccessFactors.

The deal is worth $3.4bn (£2.2bn), or $40 a share. The move — combined with Oracle's acquisition of RightNow — highlights how legacy enterprise software vendors are buying their way into the cloud.

The SuccessFactors purchase is pricey — SAP paid a 52-percent premium for the company. SAP said it will fund the purchase with cash and a €1bn (£860m) credit line. The deal is expected to close in the first quarter, hit earnings in 2012 and then add to profits in future years.

For more on this ZDNet UK-selected story, see SAP acquires SuccessFactors for $3.4 billion: Cloud consolidation accelerates on ZDNet.com.


Get the latest technology news and analysis, blogs and reviews delivered directly to your inbox with ZDNet UK's newsletters.

Topics: Tech Industry

About

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

zdnet_core.socialButton.googleLabel Contact Disclosure

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.