The News
SAP has agreed to acquire WalkMe, a San Francisco-based company whose products help employees and consumers use technology by overlaying cues and automation on top of enterprise applications and websites. The agreement results from the companies’ three-year partnership, which has seen WalkMe’s tools implemented on SAP SuccessFactors, Ariba and Concur.
At $14 per share, the agreement boosts WalkMe’s valuation to $1.5 billion. It also represents a 45% premium over the company’s stock price just before the announcement. Although WalkMe has a respectable balance sheet, that’s a fair amount of money for a business that generated subscription revenue of about $250 million in its last fiscal year. Total revenue for 2023 was $267 million. In February, the company estimated it would earn revenue of $279 million to $283 million during 2024, with operating income between $8 million and $11 million.
WalkMe’s approach is effective because it embeds guidance into the user’s session and workflow. The application is designed to increase user-adoption rates of the underlying applications and improve returns on investment. On the back end, it provides data to help track and measure technology use.
“By acquiring WalkMe, we are doubling down on the support we provide our end users, helping them to quickly adopt new solutions and features to get the maximum value out of their IT investments,” said SAP CEO Christian Klein.
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