SAP To Buy Lead To Money Solutions Firm CallidusCloud For $2.4 Bln - Quick Facts

(RTTNews) - SAP SE (SAP) announced late Monday that SAP America, Inc. has entered into an agreement to acquire Callidus Software Inc., doing business as CallidusCloud, (CALD), a cloud-based Lead to Money (Quote-to-Cash) solutions provider. The per share purchase price of $36 represents an enterprise value of approximately $2.4 billion.

The transaction is expected to be essentially neutral to SAP's non-IFRS earnings per share for fiscal 2018 and accretive to SAP's non-IFRS earnings per share for fiscal 2019.

The company said the per share price represents a 21% premium over the 30-day volume weighted average price per share and a 28% premium over CallidusCloud's 90-day volume weighted average price per share.

The CallidusCloud board of directors has unanimously approved the transaction. Upon completion of the transaction, SAP expects to consolidate all CallidusCloud product assets within SAP Hybris solutions as part of SAP's Cloud Business Group.

The existing management team will continue to lead CallidusCloud. The SAP Cloud Platform is to be used for the technical integration of CallidusCloud solutions.

The transaction is expected to close in the second quarter of 2018, subject to approval from CallidusCloud stockholders, clearances by the relevant regulatory authorities, and other customary closing conditions.

SAP has elected to fund the transaction with existing cash balances and an acquisition term loan.

SAP said the acquisition gives it immediate leadership in the Lead to Money space that includes sales performance management (SPM) and configure-price-quote (CPQ).