SAP SE (NYSE: SAP) and WalkMe Ltd. (NASDAQ: WKME) have confirmed the signing of a definitive agreement through which SAP will acquire WalkMe, a leader in Digital Adoption Platforms (DAP), in a transaction valued at approximately 1.5 billion dollars. This transaction will be carried out at a price of 14 dollars per share, representing a 45% premium over WalkMe’s closing price on June 4, 2024.
WalkMe’s solutions are designed to help organizations adapt to the constant technological changes, providing users with advanced guidance and automation tools that facilitate workflow execution in multiple applications. This significantly improves the adoption of underlying applications and optimizes the return on investment in technology.
Improving Business Transformation with SAP Business AI
SAP CEO Christian Klein has emphasized the importance of this acquisition in strengthening business transformation: “Applications, processes, data, and people are the four key pillars of successful business transformation. With the acquisition of WalkMe, we double our support for end-users, helping them quickly adopt new solutions and maximize the value of their IT investments.”
Meanwhile, WalkMe CEO Dan Adika has expressed his enthusiasm for joining forces with SAP: “We are excited to join SAP. This acquisition provides us with the resources and customer base needed to enhance our product offerings and expand our market reach. Together, we look forward to a future full of innovation and exceptional service.”
Details of the Acquisition and Next Steps
WalkMe will continue to provide full support for non-SAP applications, and will soon launch WalkMeX, a co-pilot that uses artificial intelligence to suggest the best step in any workflow. This system will always be active and can overlay on any application, including co-pilots from different providers.
The integration of WalkMe with SAP solutions, such as SAP Signavio and SAP LeanIX, as well as SAP’s AI assistant Joule, promises to increase productivity and offer substantial benefits to SAP customers. Additionally, WalkMe’s distinctive e-learning features will be integrated into SAP Enable Now, forming the core of SAP’s people-centric transformation approach.
Conditions and Timelines of the Transaction
The acquisition is subject to customary closing conditions, including approval from WalkMe shareholders and necessary regulatory authorizations. The transaction is expected to close in the third quarter of 2024. The impact on SAP’s non-IFRS earnings per share for the fiscal year 2024 is estimated to be immaterial.