SAP to acquire WalkMe for USD $1.5 billion in all-cash deal

SAP has announced that it has entered into a definitive agreement to acquire WalkMe, a leading provider of digital adoption platforms (DAPs). This acquisition is set to enhance SAP's extensive portfolio of business transformation management tools, especially complementing SAP Signavio and SAP LeanIX solutions.

The purchase, valued at approximately USD $1.5 billion, is formulated as an all-cash transaction at USD $14.00 per share, representing a 45 per cent premium over WalkMe's closing share price on 4 June 2024. This move is seen as a significant strategic step for SAP in bolstering its business transformation capabilities and enriching its artificial intelligence offerings.

WalkMe's solutions are designed to assist organisations in managing technology change effectively. By offering advanced guidance and automation features, WalkMe enables seamless execution of workflows across multiple applications, leading to improved adoption rates and enhanced value realisation from underlying applications.

Christian Klein, chief executive officer and member of the executive board at SAP, commented on the acquisition: "Applications, processes, data, and people are the four key elements of a successful business transformation. By acquiring WalkMe, we are 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 information technology (IT) investments."

Dan Adika, chief executive officer of WalkMe, also expressed enthusiasm about the acquisition: "We are thrilled to join forces with SAP. This acquisition marks a significant milestone in our journey, providing us with the resources and customer base necessary to enhance our product offerings and expand our market reach. By leveraging SAP's extensive ecosystem, we are poised to unlock substantial growth opportunities and deliver even greater value to our customers. Together, we look forward to a future filled with innovation and exceptional service."

WalkMe's platform plays a crucial role in boosting enterprise productivity by ensuring the effective and consistent use of software and related workflows. It operates across an organisation's application landscape, identifying points of friction and offering tailored support and automation to ensure tasks are completed efficiently. Importantly, WalkMe will continue to support non-SAP applications following the acquisition.

Looking ahead, WalkMe is set to introduce WalkMeX copilot, leveraging its contextual awareness and artificial intelligence to suggest optimal next steps for any workflow. WalkMeX will serve as an overlay for any application, including those from other vendors that companies may use. The integration of WalkMe's adoption capabilities with SAP's copilot Joule is anticipated to significantly enhance AI assistant functionalities and productivity gains for SAP customers. Furthermore, integrating WalkMe's e-learning features with SAP Enable Now will be central to SAP's people-centric transformation strategy.

The acquisition, which requires WalkMe shareholder approval and regulatory clearances, is expected to be completed by the third quarter of 2024. SAP has indicated that the impact on its non-IFRS earnings per share for fiscal 2024 will be negligible.