PROVO — Just weeks ahead of a planned public stock offering aiming to raise $500 million in new capital, Utah-grown business survey/analytics company Qualtrics was acquired by German tech giant SAP for a whopping $8 billion.
Industry watchers are calling it one of the biggest ever acquisition price tags for a venture-backed enterprise software company.
The cash deal, announced Sunday, blows by estimates that pegged Qualtrics’ value, post-stock offering, in the $4.5 billion to $5 billion range.
Qualtrics co-founder and CEO Ryan Smith noted the size of the acquisition put it in rarefied air, even in a current realm where billion-dollar-plus deals have become passé.
“Our mission is to help organizations deliver the experiences that turn their customers into fanatics, employees into ambassadors, products into obsessions and brands into religions,” Smith said in a statement. “Supported by a global team of over 95,000, SAP will help us scale faster and achieve our mission on a broader stage. This will put the XM Platform everywhere overnight.
“We could not be more excited to join forces with Bill and the SAP team in this once-in-a-generation opportunity to power the experience economy.”
Qualtrics was founded in 2002 by Ryan and Jared Smith based on technology first developed by Ryan and his father, BYU researcher and professor Scott Smith, amid the elder Smith’s fight (it was successful) against throat cancer. Initially conceived of as a tool for academics, the company and its platform has since evolved into a tech behemoth that leverages survey input and a business analytics engine to let its clients — now numbering over 9,000 — know exactly how well, or not, their companies are performing.
The deal mints a family of billionaires with the Smith brothers and their father collectively owning about 45 percent of the company, according to their IPO filings.
SAP is a multinational that specializes …read more
Source:: Deseret News – Business News