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January 31, 2018
martinwolf  Transaction Analysis
SAP Acquires CallidusCloud for $2.4B

Financial Information*
  • Enterprise Value                                       ~$2.4B
  • EV/LTM Revenue                                        10.04x 
  • EV/LTM EBITDA                                          NM   
Transaction Facts
  • Europe's largest software company SAP (NYSE:SAP) announced yesterday that it had acquired cloud-computing firm CallidusCloud (Nasdaq: CALD) for $36 a share, a total of ~$2.4B or a 21 percent premium over Callidus' 30-day weighted average share price.
  • The deal is expected to close in the second quarter.
  • Shares of Callidus jumped yesterday morning on the news that it would be acquired, and finished with a gain of 3.25 at $35.95 on the highest volume of the year. The company's stock also made its third consecutive new high for the year.
Fortifying Brand through M&A
  • Strategic Transition: The German ERP giant has been strengthening its base of cloud-based services through M&A, making a series of large acquisitions. The Callidus acquisition is SAP's biggest in nearly four years, while its biggest purchase was of cloud-based travel expenses management firm Concur in 2014 for $8.5B. Over the past eight years, SAP spent ~$28.6B purchasing cloud-based platforms and database software companies. Acquired companies include Ariba, SuccessFactors, Hybris, Gigya and Fieldglass. null
  • Strong Exit: Founded in 1996 and publicly listed in 2003, Callidus has also developed a strong taste for M&A, acquiring 14 companies over the past eight years (Callidus acquired four in 2017 alone). 
  • More Pressure: Along with its full-year results and acquisition announcement, SAP released its results for the final quarter of  2017.  Revenues grew 1% over the prior year period to ~$8 billion, with revenues from new cloud bookings as a strong driver in growth. In addition, the company continued its success in the ERP software market as more than 1,000 customers adopted its S/4HANA platform this quarter, bringing the overall count to more than 7,900 customers. 
For more information about this transaction,  click here to read the press release.

*Financial information from the press release and S&P Capital IQ.

martinwolf was not the advisor in this transaction.

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About martinwolf    


With offices in the San Francisco Bay Area and New York, martinwolf is a leading M&A Advisory focused on middle market companies in the IT Services, IT Supply Chain, IT-Enabled Business Process Outsourcing and Software as a Service (SaaS) space. Since 1997, our team has completed more than 150 transactions in over 20 countries and sold seven divisions of Fortune 500 companies. 

 

martinwolf is a member of FINRA and SIPC. For more information, visit www.martinwolf.com.  

 

To learn more about martinwolf, contact Bless Bai at bbai@martinwolf.com.

 

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