SAP to spin out Qualtrics via an IPO

SAP to spin out Qualtrics via an IPO
German enterprise software giant SAP announced on Sunday that it will spin out Qualtrics less than two years after buying the Utah-based “experience management” company for $8 billion.

Why it matters: The move reflects the red-hot IPO market, in which all sorts of companies are rushing to the public markets, as well as the increased importance of organizations understanding employee and customer sentiments.

Details: SAP plans to have a majority stake after the IPO, while Qualtrics co-founder and CEO Ryan Smith will be the largest individual shareholder. Expect some further details on Monday when SAP reports second-quarter earnings, including any formal board role at Qualtrics for SAP CEO Christian Klein.

Backstory: Axios has learned that SAP and Qualtrics began discussing a spin-out around three months ago, in part to help give Qualtrics a more attractive currency with which to make acquisitions and retain employees.

Go deeper: Video of Smith discussing the acquisition, during an Upfront Summit conference appearance in early 2019:

XL subscribe to our newsletter banner

Get the latest news and advice on COVID-19, direct from the experts in your inbox. Join hundreds of thousands who trust experts by subscribing to our newsletter.

Send your news and stories to us news@climaxradio.co.uk or newstories@climaxnewsroom.com and WhatsApp: +447747873668.

Before you go...

Democratic norms are being stress-tested all over the world, and the past few years have thrown up all kinds of questions we didn't know needed clarifying – how long is too long for a parliamentary prorogation? How far should politicians be allowed to intervene in court cases? To monitor these issues as closely as we have in the past we need your support, so please consider donating to The Climax News Room.