Fri, May 27, 1:53 PM
- Sources tell dealReporter P-E firm Vista Equity is close to an agreement to buy Marketo (MKTO +6.7%), and that a deal could be announced in the "next couple " of weeks.
- The site adds Marketo's lack of profits limited buyout interest, and that Vista will have to show it can deliver major cost cuts to secure debt financing for the deal.
- Marketo surged earlier this month on reports the company is exploring a sale. There had been speculation Microsoft (NASDAQ:MSFT) and/or SAP - each of which could use Marketo's cloud marketing automation software to fill out their cloud CRM software lines and better compete against Oracle/Salesforce - would bid for the company.
- Shares are up 43% since the reports arrived on May 10. If Vista buys Marketo, Microsoft/SAP buyout speculation could turn towards rival HubSpot (HUBS +0.8%).
Tue, May 10, 4:12 PM
- Reacting to news of a possible sale of Marketo (NASDAQ:MKTO) -- which just closed up 24.7% after spiking 15% on earlier chatter -- Credit Suisse believes SAP is the most likely acquirer.
- Several vendors are still missing critical CRM components, the firm says, and Microsoft (NASDAQ:MSFT) is a potential bidder as well.
- Acquisitions in the cloud sector have tended to focus on the multiples of enterprise value to the last-12-months subscription revenues, it says.
- Modeling several acquisitions over the past year and applying that multiple to Marketo ($198.9M in last-12-months sub revenue, and revenue growth of 38.1%) brings a share price of $44.35 -- 65.7% upside from the just-inflated closing price. Applying a standard error to the multiple brings a warranted price range of $37.03-$51.67 (38% to 93% upside).
- Now read Competition The Issue As Marketo Pivots To Enterprise »
Tue, May 10, 2:48 PM
- Marketo (NASDAQ:MKTO) has resumed trading after a volatility halt, spiking up 15.5% on reports that it's considering strategic options, including a possible sale of the company.
- Shares had moved in early April on similar talk, possibly with acquisition interest from Microsoft or SAP.
- Later last month, Bernstein speculated that most likely acquirers were SAP, Adobe (NASDAQ:ADBE) and Microsoft (NASDAQ:MSFT).
- Now read Competition The Issue As Marketo Pivots To Enterprise » »
May 20, 2015, 4:13 AM
- SAP Chief Executive Bill McDermott once again ruled out that his company has any interest in buying rival Salesforce.com (NYSE:CRM) and went further today by saying that Salesforce is unlikely to be acquired by any rival in the industry.
- "I do not expect that (an acquisition) to be the case at all because of the valuation of the company," McDermott declared.
- Salesforce will report FQ1 results after the bell today.
- Previously: Salesforce slumps as dealReporter states M&A talks are slow (May. 19 2015)
May 3, 2015, 6:12 AM
- Shooting down a Bloomberg report from Friday, SAP said it hasn't ever considered acquiring online rival Salesforce.com (NYSE:CRM).
- "There is no truth whatsoever to the suggestion SAP is considering or ever did consider acquiring Salesforce.com," announced an SAP spokesperson in an e-mailed statement.
- Many rumors have been on the loose since reports first surfaced last Wednesday stating Salesforce had been approached by a potential acquirer.
- Previously: Bloomberg: Salesforce, SAP discussed alliance, acquisition last year (May. 01 2015)
May 1, 2015, 4:36 PM
- Salesforce (NYSE:CRM) CEO Marc Benioff and SAP CEO Bill McDermott "held discussions last year about possible strategic alliances between the two companies," Bloomberg reports.
- The news service adds the talks covered "a potential acquisition of Salesforce by SAP." But it also states SAP wasn't the company that recently approached Salesforce about a possible acquisition (reported on Wednesday). With SAP currently worth $93B and Salesforce $48B, a deal would be closer to a merger than an acquisition after factoring an M&A premium.
- SAP, like Oracle, is a major rival of Salesforce in the CRM software market. Gartner estimates Salesforce and SAP respectively had 16% and 13% of the 2013 CRM market, #1 and #2 overall. They were followed by Oracle (10%), Microsoft (7%), and IBM (4%). Salesforce's 30.3% 2013 CRM sales growth outpaced all major rivals.
- Bloomberg's latest report follows remarks from Oracle co-CEO Safra Catz suggesting Oracle wasn't the company that recently approached Salesforce, and a BuzzFeed report to the same effect. Microsoft's name has often popped up in speculation about the suitor; IBM and Google have been mentioned to a lesser extent.
Sep. 19, 2014, 11:23 AM
- SAP (SAP -3.9%) investors have a case of sticker shock after the company agreed to pay $8.3B (to be financed through a credit facility) to buy cloud travel/expense management software leader Concur Technologies. The acquisition price is equal to 9.6x Concur's estimated FY15 (ends Sep. '15) sales.
- On the other hand, enterprise cloud software names are rallying on hopes of fresh deal activity. CRM +1.5%. N +2.7%. NOW +2.6%. PAYC +5%. ULTI +2.2%. JIVE +1.8%. DWRE +1.8%. MKTO +1.7%.
- SAP CEO Bill McDermott proclaims combining Concur's products with Ariba's cloud procurement/B2B marketplace offerings and Fieldglass' cloud labor-management software will help his company redefine "how businesses conduct commerce across goods and services, contingent workforces, travel and entertainment."
- McDermott also praises Concur's corporate travel ecosystem, which includes Hertz, Delta, Expedia, Sabre, and many others, and sees an opportunity to create real-time travel collaboration tools running on SAP's Hana in-memory database. SAP notes only 30% of Concur customers are currently SAP clients, yielding plenty of cross-selling opportunities.
Sep. 18, 2014, 5:24 PM
- SAP is paying $129/share, or an enterprise value of $8.3B, to acquire top cloud travel/expense management software vendor Concur Technologies (NASDAQ:CNQR). The price represents a 20% premium to Concur's Thursday close.
- The deal is expected to close in Q4 2014 or Q1 2015, and will be financed using a €7B credit facility. SAP notes Concur claims 23K+ customers and 25M+ active users.
- The purchase is the latest in a string of major cloud software acquisitions by SAP, which is counting on cloud growth to offset slumping traditional license sales. Other major cloud-related purchases include SuccessFactors, Ariba, and hybris.
- Previous: Concur reportedly approached SAP, Oracle about acquisition
Sep. 2, 2014, 5:28 PM
- Concur (NASDAQ:CNQR) approached SAP and Oracle (NYSE:ORCL) to "gauge their interest" in an acquisition, sources tell Bloomberg. Oracle, set to buy point-of-sale hardware vendor Micros for $5.3B, is said to have passed.
- No details are given on SAP's reaction. Back in January, the German software giant suggested it could make another big cloud software acquisition - it already has a few under its belt. But in April, SAP, which is counting on cloud growth to offset slumping traditional license sales, stated it considers itself under no pressure to make a deal.
- Concur has pared its AH gains: The cloud travel/expense software provider is now up 11%. Its market cap stands at $6.4B.
- Earlier: Concur reportedly exploring sale
May 27, 2014, 10:08 AM
- Germany's Der Aktionär reports SAP (SAP +2.1%) might be looking to acquire Tibco (TIBX +5.5%). The latter's shares have jumped in response.
- Buying Tibco would strengthen SAP's middleware offerings - IBM/Oracle have a big chunk of the market - and also provide it with an analytics/data visualization platform (Spotfire) to complement its Hana in-memory database.
- But an acquisition price would likely be north of $4B, and Spotfire has been struggling lately amid tough competition from Tableau and others.
- On Twitter, Germantrader suggests taking the report cautiously, calling it "guesswork" and stating Der Aktionär "is not trusted in Germany."
- SAP has suggested it could make some large deals, as cloud competition pressures its on-premise software license sales. Recent purchases include marketing software firm SeeWhy and labor-management software firm Fieldglass.
May 20, 2014, 11:30 AM
- Acquisition-hungry SAP's (SAP -0.3%) latest buyout target is SeeWhy, a top provider of behavior-analysis online marketing software. Terms are undisclosed.
- SeeWhy's products monitor/analyze the activity of online/mobile shoppers, and use their findings to deliver personalized e-mail follow-ups and targeted ads. Its offerings complement those of SAP's hybris unit, a leading provider of e-commerce infrastructure software (acquired last year, possibly for $1B+).
- Demandware (DWRE -1.5%), which competes against SAP/hybris, has a partnership with SeeWhy that could be affected by the deal.
- SAP's move comes two months after the company struck a partnership with Adobe's Marketing Cloud online ad tech unit, and announced it's buying cloud labor-management software vendor Fieldglass.
Mar. 26, 2014, 10:47 AM
- SAP (SAP +0.5%) is buying Fieldglass, a top provider of cloud software for obtaining/managing contingent labor and services. The company plans to combine Fieldglass' software with Ariba's cloud procurement offerings and its SuccessFactors' cloud HR products to "deliver a platform for businesses to manage their entire workforce both temporary and permanent staff."
- Terms are undisclosed. However, Bloomberg reported shortly before SAP issued a PR that the company would be announcing a $1B+ acquisition.
- The acquisition comes as SAP strikes a reseller deal with Adobe (ADBE -0.9%) related to the latter's Marketing Cloud online ad tech platform. Marketing Cloud (sales +24% Y/Y in the Feb. quarter to $267M, was just refreshed) will be packaged with SAP's Hana in-memory database and hybris e-commerce infrastructure software to marketers.
- Given Adobe bought marketing automation software vendor Neolane last year and folded its products into Marketing Cloud, the partnership might lower the odds SAP will make a bid for Marketo (MKTO -1.3%) or another marketing automation firm, as many have expected.
Jan. 22, 2014, 9:45 AM
- VMware (VMW -1.2%), parent EMC (EMC -1.3%), Citrix (CTXS -2%), and SAP (SAP -1.5%) are all lower following news of VMware's $1.54B acquisition of leading mobile device management (MDM) software firm AirWatch.
- Citrix (thanks to the Zenprise acquisition) and SAP (through its Sybase unit) compete with AirWatch. As does BlackBerry (BBRY +4.6%), which remains higher following news of its real estate sale plans.
- AirWatch's products, which also include mobile app management and security solutions, complement VMware's Horizon Workspace, which provides a secure, siloed workspace for business apps and files on mobile devices. With Citrix and SAP already offering an array of complementary mobile software tools for enterprises, VMware's move is in part an attempt to keep pace.
- AirWatch, Citrix, SAP, and BlackBerry, along with other firms such as IBM (previous) and Good Technology, are trying to profit from growing enterprise interest in MDM solutions, which help companies cope with the ongoing bring-your-own-device (BYOD) trend.
- In tandem with the acquisition, VMware has reported preliminary Q4 revenue of $1.48B (+15% Y/Y), slightly above a $1.47B consensus. Q4 license revenue is expected to come in at $$687M (+15%), within a guidance range for 12%-16% growth. VMware's full Q4 results are due on Jan. 28.
Dec. 20, 2013, 6:21 PM
- Responsys (MKTG +40.4%) closed today at $27.40, $0.40 above Oracle's (ORCL -0.6%) $27/share acquisition price. Meanwhile, fellow cloud marketing automation software firms Marketo (MKTO +11.3%) and Constant Contact (CTCT +6.8%) closed up sharply.
- Sources tell the WSJ SAP (SAP +0.8%) was "among the final bidders" for Responsys before Responsys decided to sell to Oracle. An analyst talking to the paper thinks Responsys' trading price suggests investors are betting on an SAP counteroffer arriving.
- FBR, on the other hand, thinks Oracle's deal could lead either SAP or NetSuite (N +2.2%) to acquire Marketo. Both SAP (courtesy of the hybris acquisition) and NetSuite (via its SuiteCommerce platform) are major players in e-commerce infrastructure software, but neither have leading positions in online marketing automation.
- Forrester argues Oracle's move will improve the company's "capable but otherwise moribund" marketing software lineup. Goldman notes Oracle is paying 8x Responsys' recurring annual revenue - a steep multiple, but less than the 11x it paid for Eloqua.
Oct. 28, 2013, 1:27 PM
- "Blackberry doesn't fit with our strategy," says SAP (SAP +0.6%) CFO Werner Brandt, shooting down reports the German software giant is interested in parts of BlackBerry (BBRY -0.2%). Cisco, Samsung, and Google have also been reported to be interested in acquiring some of the struggling smartphone vendor's assets.
- Meanwhile, the new Android/iOS BBM apps has received a harsh review from The Verge, and a muted review from The Inquirer. The former only gave the apps a score of 5.0/10, while criticizing their "ugly design" and the absence of features offered by rival mobile messaging services, such as voice calls, video chats, and location sharing. The latter likes the apps' "reasonably smooth" UI and invite features, but sees them having trouble standing out in a crowded landscape.
- Also: Complaints have come in about fake BBM reviews on Google Play, where the app maintains a user rating of 4.2/5 stars. BlackBerry says it had nothing to do with the fake reviews.
- Previous: BBM Android/iOS downloads top 10M
Oct. 24, 2013, 12:09 AM
- Ahead of tomorrow's Q3 report, NetSuite (N) has struck a deal to acquire TribeHR, a developer of cloud HR apps aimed at SMBs. NetSuite plans to fuse the startup's offerings with its SMB-focused cloud ERP apps.
- "Really there has been no HR offering in the mid-market," states NetSuite CEO Zach Nelson (a little hyperbolically). He sees an intergrated ERP/HR solution allowing SMBs to do away with manual HR processes, and also talks up the value of TribeHR's social/collaboration tools.
- The purchase means NetSuite will compete more with Workday (WDAY), which leads the cloud HR market and also offers cloud ERP software. But Workday has a stronger focus on large enterprises. Ultimate Software (ULTI), Cornerstone OnDemand (CSOD), and Paylocity (reportedly eying an IPO) also compete in cloud HR.
- Separately, NetSuite and others see an opportunity for the company to poach clients from SAP's SMB-focused Business ByDesign cloud apps, which the German software giant has decided to pare its investments in. NetSuite has launched a Business ByDesign migration program.
- SAP has reportedly invested €3B in Business ByDesign development over 7 years, but the platform has never generated more than €23M/year in sales in 3 years of availability. Business ByDesign resources will be shifted towards SAP's Hana Cloud, which runs cloud apps on top of the popular Hana in-memory database.
SAP SE provides enterprise application software and software-related services worldwide. It operates through the On-Premise and Cloud segments. The On-Premise segment comprises of on-premise products and on-premise services divisions. The on-premise products division is involved in marketing and... More
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