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Key Takeaways
- SAP announced it is buying digital adoption platform provider WalkMe for $1.5 billion in a deal set to boost SAP’s artificial intelligence offerings.
- The agreement prices WalkMe shares at $14 each, a 45.2% premium over their closing price Tuesday.
- SAP said adding WalkMe technology complements its Business Transformation Management portfolio.
German business software developer SAP ( SAP ) agreed to buy digital adoption platform provider WalkMe ( WKME ) for $1.5 billion in cash, in a deal set to boost SAP’s artificial intelligence (AI) offerings.
SAP announced Wednesday that the agreement would pay WalkMe investors $14 per share, a 45.2% premium to WalkMe’s closing price Tuesday. WalkMe shares skyrocketed in intraday trading Wednesday, almost reaching the offer price level after the announcement.
How WalkMe Will Add to SAP Offerings
Tel Aviv-based WalkMe helps organizations manage workflows across a number of applications. SAP noted that its technology “complements SAP’s Business Transformation Management portfolio around SAP Signavio and SAP LeanIX solutions to help customers.” SAP acquired Signavio in 2021, and LeanIX last September.
CEO Christian Klein said that with the purchase, SAP is “doubling down on the support we provide our end users , helping them to quickly adopt new solutions and features to get the maximum value out of their IT investments.”
The transaction is expected to close in the third quarter.
WalkMe shares soared over 42% in intraday trading Wednesday to $13.78 as of 3:30 p.m. ET, their highest level since 2022. American depositary receipts (ADRs) of SAP gained as well, rising 2% to $187.89.