SAP buys WalkMe for $1.5 billion
Enterprise software giant SAP is purchasing WalkMe for $1.5 billion. WalkMe operates as a digital guidance platform that enables users to use software and websites more efficiently and easily. The WalkMe deal, in particular, is designed to complement two other acquisitions SAP has made in the last few years. The company is strengthening its digital transformation strategy by acquiring business process automation company Signavio and enterprise architecture management firm LeanIX.
SAP continues to make acquisitions to strengthen its digital transformation strategy. The company is purchasing WalkMe for $1.5 billion. WalkMe operates as a digital guidance platform that enables users to use software and websites more efficiently and easily.
WalkMe was originally designed to make website navigation easier by providing real-time, on-screen guidance. Over the years, the company moved its headquarters to San Francisco and strengthened its platform with more features, focusing more on both consumer and enterprise applications. WalkMe also provides insights into end-user behavior, focusing on providing extra support tools or information at points where the user is more likely to exit the app.
WalkMe had raised nearly $300 million before its 2021 IPO, but like many pandemic-era companies, its valuation has fallen in the intervening years. The company’s market value has hovered between $800 million and $900 million this year, but its shares have risen 25 percent in two weeks following strong earnings last month.
SAP, on the other hand, increased its valuation to $230 billion this year, an all-time high, due to its strong financial performance.
The WalkMe deal, in particular, is designed to complement two other acquisitions SAP has made in the last few years. It acquired the German company Signavio, a business process automation company, for $1.2 billion in 2021, and another German company called LeanIX, which specializes in enterprise architecture management, basically helping companies modernize faster, for $1.2 billion.