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Today, SAP announced that it has signed a definitive agreement to acquire WalkMe, an Israeli multinational company that offers a digital adoption platform (DAP). SAP will purchase WalkMe in an all-cash deal valued at $1.5 billion, paying $14 per share. This price represents a 45% premium over WalkMe’s June 4 closing price of $9.64. This acquisition aims to enhance SAP’s Business Transformation Management suite and accelerate the adoption of digital solutions, potentially boosting customer productivity and return on investment (ROI).
Applications, processes, data, and people are the four key elements of a successful business transformation. Acquiring WalkMe will significantly enhance SAP’s support for end users, helping them rapidly adopt new solutions and features to maximize the value of their IT investments.
This marks SAP’s third major acquisition aimed at accelerating business transformation efforts, following the purchases of Signavio and LeanIX.
What does WalkMe bring to SAP?
Founded in 2011, WalkMe initially offered real-time, on-screen guidance to simplify website navigation. Over time, the company evolved into a full-fledged digital adoption platform that provides enterprises with personalized user guidance, workflow automations, and AI-powered insights. The DAP operates on top of an organization’s existing tech stack, offering personalized guidance, nudges, and automations to help users maximize these services. This can range from navigating an app to resolving sign-up issues. Users benefit from seamless in-workflow assistance, while admins gain valuable AI-powered insights into user interactions, helping them automate workflows and enhance digital transformations.
Recently, WalkMe introduced WalkMeX, a copilot that offers contextual guidance and next steps within any app, using the platform’s intelligence and data.
While WalkMe has already been integrated with SAP’s SuccessFactors HCM workflows, the acquisition allows SAP to incorporate WalkMe’s technology into its Business Transformation Management portfolio. This will assist organizations in navigating digital transformations more effectively.
In the past, SAP acquired Signavio, a business process automation platform, and LeanIX, which provides automated visualization of enterprise software architecture. WalkMe is expected to complement these offerings and enhance other SAP applications, including the S/4 HANA ERP business suite. Dan Adika, CEO of WalkMe, demonstrated how WalkMe’s technology could facilitate tasks like creating an invoice order within S/4 HANA. Additionally, WalkMeX will integrate with SAP’s Joule gen AI assistant.
The deal is subject to customary closing conditions, including approval from WalkMe’s shareholders, and is expected to close by the third quarter of 2024.