SAP buys SuccessFactors in $3.4bn deal

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.