SAP plans Qualtrics IPO two years after record deal

Daniel Fowler
July 27, 2020

SAP SE (NYSE:SAP) intends to take Qualtrics, an Experience Management software company public through an IPO in the US, with an objective of fortifying Qualtrics' ability to capture full market potential within the category.

Why it matters: The move reflects the red-hot IPO market, in which all sorts of companies are rushing to the public markets, as well as the increased importance of organizations understanding employee and customer sentiments.

Qualtrics founder Ryan Smith intends to be the XM tech developer's largest individual stockholder and will continue to run the company along with the current management team.

SAP said earlier this month that while software license revenues were below normal levels in the second quarter, they recovered more than expected in the period buoyed by a resumption in software deals in Asia.

Under the proposed initial public offering, SAP would retain a majority stake in Qualtrics and Smith would be the second-largest shareholder.

SAP's acquisition of Qualtrics was one of the biggest-ever deals for the software giant based in Walldorf, Germany.

Garmin goes down after suspected ransomware attack
That's not a small amount of money, with the lockdown of Garmin's services reportedly the fault of the WastedLocker ransomware . Garmin has no indication that this outage has affected your data, including activity , payment or other personal information.

However, a final decision on the IPO, its conditions and timings are yet to be confirmed and is further subjected to market conditions, sources claimed.

SAP SE plans to list its Qualtrics software unit less than two years after buying the company for a record sum, a surprise about-face that signals a strategic shift under new Chief Executive Officer Christian Klein.

"As Ryan Smith, [Qualtrics COO] Zig Serafin and I worked together, we decided that an IPO would provide the greatest opportunity for Qualtrics to grow the experience management category, serve its customers, explore its own acquisition strategy and continue building the best talent". Qualtrics was the capstone of former CEO Bill McDermott's $26 billion shopping spree to help push the 48-year-old software giant into faster-growing cloud-based software and services.

"'There are millions of complaints every day about disappointing customer experiences, ' Mr. McDermott said in 2018, as he laid out the rationale for the purchase".

Ya think? Maybe we should do a survey about that ...

Other reports by

Discuss This Article