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SAP America, a subsidiary of SAP has announced to acquire SuccessFactors, an American company providing cloud based human capital management (HCM) solutions for $3.4 billion.
The company's subsidiary would offer to acquire all outstanding shares of common stock of SuccessFactors for $40.00/per share in cash, an enterprise value of about $3.4 billion, said the company.
According to the company, the SuccessFactor's board of directors have approved of the transaction which will be funded from SAP’s cash on hand and a €1 billion term loan facility.
The transaction is expected to close in the first quarter of 2012.
''The acquisition will help us address the top priority for CEOs globally – managing people and talent. Together, SAP and SuccessFactors will create tremendous business value for customers, with potent synergies to accelerate our growth in the cloud,'' said Bill McDermott, co-CEO, SAP.
''Expanding relationships with SAP’s 176,000 customers with our speed to value, friendly user interface, on mobile devices and the web, and seamlessly delivering more SAP solutions in the cloud will be legendary, as organizations adopt the cloud to improve their business,'' said Lars Dalgaard, founder and CEO, SuccessFactors.
The combination of SuccessFactors and SAP will create a comprehensive HCM solution, enabling strength in enterprise applications with people-focused cloud applications, said the companies.