SAP Moves Further Into the Cloud With Callidus Deal -- Update
30 Janvier 2018 - 12:53PM
Dow Jones News
By Marc Navarro Gonzalez
SAP SE on Tuesday said it would buy Callidus Software Inc. for
$2.4 billion, the German software company's latest move to bolster
its cloud-computing business.
SAP will pay $36 a share for the California-based company, which
sells software used by sales and marketing teams and operates under
the name CallidusCloud.
The German company has pushed beyond its traditional
software-licensing operations in recent years with a series of
acquisitions of cloud-focused businesses, including the purchase of
expense-management software company Concur Technologies for $8.3
billion in late 2014.
It said the deal to buy CallidusCloud, whose board has approved
the transaction, would close in the second quarter.
News of SAP's latest acquisition came as it reported
fourth-quarter earnings that were supported by its cloud
operations.
SAP said net profit rose 21% to EUR1.85 billion ($2.29 billion)
in the quarter, on revenue up 1% to EUR6.81 billion. In the cloud
business, revenue jumped 20% to EUR995 million, with bookings for
cloud service rising 22% in the period to reach EUR591 million.
The company's bottom line was also boosted by a EUR200 million
benefit related to the U.S. tax overhaul and the intracompany
transfer of intellectual-property rights between Germany and
Switzerland. SAP said the improved investment environment in the
U.S. would will help its business long-term.
Despite the upbeat figures, SAP's stock traded 0.5% lower in
morning trading in Frankfurt, with analysts at LBBW saying the
results were slightly below expectations because of weakness in the
company's traditional licensing business.
The company also issued a outlook for 2018, forecasting non-IFRS
operating profit of between EUR7.3 billion and EUR7.5 billion at
constant currencies, and non-IFRS total revenue of between EUR24.6
billion and EUR25.1 billion at constant currencies.
Zeke Turner contributed to this article.
(END) Dow Jones Newswires
January 30, 2018 06:38 ET (11:38 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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