Suhail Capital • 16 Comments
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.
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.
Sep. 17, 2012, 4:37 PM
Oracle (ORCL) is acquiring SelectMinds, a developer of cloud apps for recruiting talent via referrals and social connections, and handling relationship with ex-employees. SelectMinds' software joins an arsenal of Oracle cloud HR solutions that includes its Fusion apps and Taleo. Remaining independent cloud talent management vendors include CSOD, SABA, and ULTI. (IBM-Kenexa) (SAP-SuccessFactors)| Sep. 17, 2012, 4:37 PM
Aug. 31, 2012, 5:39 PM
Saba Software (SABA +17.8%) closed with a huge gain on heavy volume. M&A speculation fueled by IBM's Monday deal to buy fellow cloud HR software firm Kenexa is almost certainly the reason. On Tuesday, B. Riley argued Saba could be sold at a hefty premium to a larger cloud player such as Salesforce.com or Workday, or an IT giant such as H-P or Dell. Peers Cornerstone OnDemand (CSOD +2%) and Ultimate Software (ULTI +1.1%) had more modest gains. (previous)| Aug. 31, 2012, 5:39 PM
Feb. 9, 2012, 10:30 AM
Dec. 5, 2011, 8:29 AM
Salesforce.com (CRM) is up 2.8%, joining Taleo (TLEO) and NetSuite (N) in rising premarket in the wake of SAP/SFSF, even though its size (current market cap of $16.3B) makes it tougher for a would-be acquirer to swallow. Also higher: ULTI +1.6%. LPSN +3%. Other names haven't yet seen premarket activity, but could move once markets open.| Dec. 5, 2011, 8:29 AM | 1 Comment