Jan 26, 2023 - Economy

SAP restructuring could include Qualtrics sale

Dan Primack

Photo by Thomas Lohnes/Getty Images.

SAP is exploring a sale of its remaining 71% stake in Qualtrics, a Utah-based maker of survey and customer experience software, as part of a broader restructuring that includes 3,000 job cuts.

Why it matters: It would be the end of a complicated partnership that began in late 2018, when SAP agreed to buy Qualtrics for $8 billion in cash. At the time, it was the largest-ever acquisition of a VC-backed enterprise software company.

But it also was spearheaded by SAP CEO Bill McDermott, who abruptly resigned just a year later. Under new leadership, SAP soon spun Qualtrics out into an independent company via IPO, while retaining a majority stake.
Now, SAP may unload its remaining 71% position in Qualtrics, under the aegis of refocusing on its core enterprise resource planning (ERP) business.

The bottom line: Qualtrics was valued at $21 billion when SAP took it public. That slumped to $6.6 billion as of yesterday's market close, valuing SAP's remaining stake at $4.74 billion, although shares surged more than 30% at today's market open.

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SAP restructuring could include Qualtrics sale

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