Software group SAP has agreed to sell its stake in data analytics firm Qualtrics for $7.7 billion as part of the acquisition of Qualtrics by funds affiliated with financial investor Silver Lake, according to its statement on Monday.
The purchase price is about 73 percent higher than the average trading price as of January 25, the last trading day before SAP announced talks to sell its stake in Qualtrics.
The transaction is part of the full cash acquisition of Qualtrics, estimated at $12.5 billion under the leadership of Silver Lake Private Equity and the Canadian Retirement Plan Investment Board.
“Silver Lake has both the operational expertise and the track record with software companies to help Qualtrics extend its leadership in the XM category it pioneered,” said Christian Klein, CEO and Member of the Executive Board of SAP SE.
While the transaction is subject to customary regulatory clearances and expected to close in the second half of 2023, SAP’s financial results for the first quarter, due April 21, are expected to present Qualtrics as a discontinued operation.