German software giant SAP announced on Wednesday it has agreed to acquire digital adoption startup WalkMe for a cash transaction valued at $1.5 billion. This offer represents a significant 45% premium over WalkMe’s closing share price from the previous night. The acquisition is expected to be finalized by the third quarter of 2024, pending approval from regulators and WalkMe’s shareholders.
The Tel Aviv, Israel-based WalkMe provides a Digital Adoption Platform (DAP) that helps enterprises in delivering relevant guidance and automation functions to their workforce. SAP executives highlighted how WalkMe’s platform enhances workflow execution across various applications.
“The Executive and Supervisory Boards of SAP SE and the board of directors of WalkMe have approved the transaction for US $14.00 per share in an all-cash transaction, representing an equity value of approximately US $1.5 billion. The offer price represents a 45% premium to WalkMe’s closing share price on June 4, 2024,” SAP said in a news release.
SAP views this acquisition as a strategic enhancement to its business transformation management suite, complementing previous acquisitions like Signavio and LeanIX. The aim is to bolster support for customers undergoing digital transformation.
“Applications, processes, data, and people are the four pillars of a successful business transformation,” stated Christian Klein, CEO and Executive Board member of SAP SE. “By acquiring WalkMe, we are strengthening our commitment to end-user support, enabling quicker adoption of new solutions and maximizing the value of IT investments.”
WalkMe CEO Dan Adika hailed the acquisition as a landmark event. He emphasized that the resources and ecosystem provided by SAP would significantly enhance WalkMe’s product offerings and market reach. “Leveraging SAP’s extensive ecosystem, we are set to unlock substantial growth opportunities and deliver even greater value to our customers,” Adika noted.
WalkMe’s platform operates across other vendors’ applications, monitoring usage and providing actionable recommendations. It identifies friction points and offers necessary support and automation to complete tasks efficiently, irrespective of the applications involved. The company boasts a client base exceeding 2,000, including major names like IBM, Nestlé, Thermo Fisher Scientific, and the US Department of Defense.
Post-acquisition, WalkMe will continue to support non-SAP applications, as confirmed by SAP management.
Recently, WalkMe introduced a copilot for its AI-powered DAP, leveraging context and AI to suggest optimal next steps in workflows. This copilot can function continuously, overlaying various applications, including other vendors’ copilots. SAP anticipates that WalkMe’s features will further enhance its own copilot, Joule, thereby increasing productivity for SAP customers.
We covered WalkMe back in 2019 after the startup raised $90 million in funding to scale operations and expand to Latin America. The round was led by Vitruvian Partners with participation from Insight Partners. Co-founded by President Rafael Sweary.
