SAP Strengthens Cloud Presence Via Acquisition

SAP, the business-management software giant, announced the acquisition of cloud-based human capital management solutions provider SuccessFactors for US$3.4bn. The deal is expected to close in Q112 with SuccessFactors remaining as a standalone unit. SAP co-CEO Bill McDermott stated the deal could add EUR1bn to its revenues by 2015, expanding on its earlier target of EUR20bn. CFW considers the acquisition to have strengthened SAP in the key growth area of cloud applications as it expands beyond its traditional business areas, although we believe further acquisitions may also be required to keep pace in the highly competitive market.

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