German software giant SAP sells US subsidiary Qualtrics

In a surprising move, German software company SAP has announced the sale of its US-based subsidiary Qualtrics for $1.55 billion. This move marks the end of a two-year stint for Qualtrics under SAP's ownership.

Qualtrics, a cloud-based survey software company, was acquired by SAP in 2018 for over $8 billion. At that time, the acquisition was seen as a strategic move for SAP to expand into the customer experience software market. However, the COVID-19 pandemic has caused SAP to shift its focus, resulting in the sale of Qualtrics to private equity firm Silver Lake.

The sale of Qualtrics is not completely unexpected, as rumors of a potential sale had been circulating for months. However, the sale price of $1.55 billion is significantly lower than the price that SAP paid for the company just two years ago. This has caused some concern among investors, who are questioning the strategic value of the acquisition and SAP's ability to execute its plans.

Despite the concerns, SAP has stated that it remains committed to the customer experience software market, and will continue to offer its own customer experience products, such as SAP Customer Experience and SAP Sales Cloud. The company has also stated that it will use the proceeds from the sale of Qualtrics to pay down debt and invest in other growth areas.

Overall, the sale of Qualtrics marks a significant shift in SAP's strategy, and it is uncertain what the future holds for both SAP and Qualtrics. However, with the continued growth of the customer experience software market, it is likely that SAP will continue to invest in this area and explore new opportunities for growth.

https://www.lifetechnology.com/blogs/life-technology-technology-news/german-software-giant-sap-sells-us-subsidiary-qualtrics

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