German software giant SAP announced that it has entered into an agreement to acquire the Israeli digital adoption platform company Meniningnen (Nasdaq: WKME) for $14 per share, a 45% premium to yesterday's closing price, representing a stock value of $1.5 billion. In pre-market trading, WalkMe's stock price rose 41.8%.
However, the acquisition is priced below WalkMe's $2.6 billion valuation at its IPO in 2021. At the end of the first quarter of 2024, WalkMe had $340 million in cash in its vaults.
WalkMe has developed a user interface known as the Digital Accreditation Platform (DAP) that simplifies the use of complex enterprise software, allowing businesses to increase productivity and reduce risk. The company was founded by CEO Dan Adica, Rafael Soiri and Eyal Cohen. As of its last report, the company's largest shareholders were venture capital funds including Gemini Israel. Adika holds a 3.8% stake worth $50.6 million in the deal. Insight Partners is the largest single shareholder with a 26.4% stake valued at $354 million.
SAP has a development center in Israel with 900 employees in Raanana and Tel Aviv. The development center works on the German company's cloud platform in the field of user identity, privacy and user experience management. The development center is based on 11 startups that SAP has acquired in Israel over the years.
SAP said the envisioned suite complements SAP's business transformation management portfolio around SAP Signavio and SAP LeanIX solutions to help customers in their transformation journeys.
“Applications, processes, data and people are the four core elements of successful business transformation,” said Christian Klein, CEO of SAP SE. “By acquiring WalkMe, we are doubling the support we provide to our end users, helping them quickly adopt new solutions and features to get maximum value from Their investments in information technology.
Added Adeka: “We are delighted to join forces with SAP. This acquisition represents a significant milestone in our journey, providing us with the resources and customer base needed to enhance our product offerings and expand our market reach. By leveraging SAP’s comprehensive ecosystem, we are poised to open up opportunities To grow significantly and deliver greater value to our customers, together we look forward to a future filled with innovation and exceptional service.
WalkMe reported revenue of $68.6 million for the first quarter of 2024, up 4% from the corresponding quarter in 2023. GAP net loss narrowed 76.5% to $6.1 million and non-GAAP net profit swung from loss to Profit of US$6.9 million ($0.07). per share).
Published by Globes, Israel Business News – en.globes.co.il – on June 5, 2024.
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