SAP has acquired CallidusCloud for $2.4 billion, boosting its cloud service portfolio to include Callidus' cloud-based human resource software, sales, Lead to Money (Quote-to-Cash) systems, marketing and customer experience solutions.
The company said bringing onboard Callidus' expertise in some of SAP's key markets will help connect the back office to the front office functions in businesses of all sizes, helping customers realise the importance of consumer-driven growth. It will also grow SAP's CRM offering and the businesses' solutions will be merged as part of SAP's Cloud Business Group.
"Our customers are focused on reinventing sales, service, marketing, and commerce," Bill McDermott, CEO of SAP said. "The addition of CallidusCloud aligns perfectly to SAP's innovation strategy to transform the front office. SAP gives CallidusCloud the global scale to accelerate its already impressive growth. These two strong companies will be better together, help the world run better and improve people's lives."
CallidusCloud's board of directors has approved the transaction and it's expected to close in the second quarter of 2018 if all goes to plan. Callidus' management team will carry on leading the company, although its not clear what will happen to the company's other employees or whether they will be merged with SAP's resources.
"This move gives customers precisely what they want, the market leading Sales Performance (SPM), Sales Execution (CPQ) and Sales Enablement clouds combined with SAP Hybris and S/4HANA. This is true Lead to Money, beyond CRM and beyond Quote-to-Cash," CallidusCloud CEO Leslie Stretch said.
"It's the joined-up Front Office and Back Office Cloud everyone needs for 21st Century Business. In addition, the purchase price provides substantial value to our stockholders."
