SAP SE Acquires Israel-based WalkMe at a Valuation of $1.5 Billion in Cash

German software firm SAP SE (SAP) on June 5, 2024, entered into a definitive merger agreement to acquire Tel Aviv-based WalkMe Ltd. (WKME) for $1.5 billion.

Deal Structure:

Under the terms of the agreement, SAP will acquire all outstanding shares of WalkMe for $14 per share in cash, representing a premium of 45.23% from the stock’s last close.

Company Profile:

Israel-based WalkMe is a SaaS company that provides solutions to help organizations navigate constant technology change by providing users with advanced guidance and automation features that enable them to execute workflows seamlessly across any number of applications.

SAP SE, headquartered in Walldorf, Germany, provides comprehensive applications, technology, and services globally, including solutions for finance, HR, supply chain, procurement, business process management, and business-to-business collaboration.

Deal Details and Timeline:

SAP through the acquisition, will combine WalkMe’s capabilities with its existing tools, like SAP Signavio and SAP LeanIX.

“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 Christian Klein, CEO of SAP SE.

WalkMe’s current Price/Sales (TTM) ratio is 3.21, above the sector median of 2.98.

WalkMe will soon launch WalkMeX, an AI-powered tool that helps guide users through any workflow in any application. By combining this with SAP’s AI assistant Joule, SAP aims to enhance productivity and support for all its customers.

The acquisition is expected to close in the third quarter of 2024.

Deal Metrics:

To delve into more specific details of the above M&A transaction, please visit the Deal Metrics page here:

Deal Metrics for the acquisition of WalkMe Ltd. (WKME) by SAP SE (SAP)

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• A spread history chart of the merger from announcement through eventual completion or failure.
• Every event as the merger progresses through the expiration of the HSR period, various regulatory approvals, shareholder votes, etc.
• News and SEC filings.
• A history of deal updates.
• And a whole lot more.

Disclaimer: This article is meant to inform and should not be used as a basis for investment decisions. Please conduct thorough personal research before trading any securities mentioned herein. We do not guarantee the comprehensive accuracy of the content or data provided in this article.

Editor’s Note: Baranjot Kaur contributed to this article