Utah-based Qualtrics had filed for IPO last month
SAP SE has agreed to purchase Qualtrics International Inc. for $8 billion in cash, the companies announced Sunday.
Qualtrics, a Utah-based software company, had filed for an initial public offering in October hoping to raise about $200 million.
Bill McDermott, chief executive of German-based software giant SAP SAP, -4.76% SAP, -3.62% , said Sunday the deal would bolster its offerings.
“We continually seek out transformational opportunities — today’s announcement is exactly that,” McDermott said in a statement. “Together, SAP and Qualtrics represent a new paradigm, similar to marketmaking shifts in personal operating systems, smart devices and social networks.”
In a statement, Qualtrics CEO Ryan Smith said “SAP will help us scale faster and achieve our mission on a broader stage. This will put the XM Platform everywhere overnight.” The XM Platform is Qualtrics’ experience-management software for feedback and data analysis.
Smith will continue to lead Qualtrics, and the company said it expects full-year 2018 revenue to exceed $400 million.
The companies said the deal is expected to close in the first half of 2019.
SAP’s American depositary receipts are down 3.6% year to date, compared to the S&P 500’s SAP, -4.76% 4% gain.