SAP Concludes Buyout of Israel-Based WalkMe for $1.5 Billion

SAP SE SAP has acquired WalkMe Ltd. for approximately $1.5 billion. This deal represents an approximate 45% premium to WalkMe's closing share price on June 4, 2024, the day when SAP and WalkMe agreed to the binding terms of the acquisition.Following the acquisition, each ordinary and outstanding share of WalkMe has been converted into the right for shareholders to receive $14.00 per share in cash, subject to adjustments. The completion of the acquisition has been officially reported to the Nasdaq stock market, and WalkMe's ordinary shares are expected to be suspended from trading at the close of the market today in anticipation of delisting.Headquartered in Tel Aviv, Israel, WalkMe is known for its innovations in digital adoption platforms. The company enhances and speeds up the effectiveness of digital transformation strategies by promoting user adoption of digital assets. WalkMe’s Digital Adoption Platform continuously identifies gaps and issues, guiding users to success without requiring code changes or alterations to existing platforms.WalkMe’s cutting-edge technology improves workflow execution across business software applications, enhancing user experience and adoption while supporting business transformation. This acquisition will complement SAP’s Business Transformation Management portfolio, including SAP LeanIX and SAP Signavio, and will aid clients in accelerating their digital transformations.SAP SE Price and Consensus SAP SE price-consensus-chart | SAP SE QuoteEmbedding WalkMe’s adoption capabilities with SAP’s copilot Joule will strengthen artificial intelligence (AI) assistance and productivity for SAP customers. Additionally, combining WalkMe’s e-learning features with SAP Enable Now will create a central component of SAP’s people-centric transformation approach.Booming Cloud Business and Focus on GenAI Bode Well for SAPHeadquartered in Walldorf, Germany, SAP is one of the largest independent software vendors in the world and the leading provider of enterprise resource planning software.SAP’s performance is gaining from strengthening cloud business, especially robust demand for the Rise with SAP and Grow with SAP solutions. In the second quarter of 2024, SAP’s cloud revenues were €4.15 billion, up 25% year over year on a non-IFRS basis (nominal and cc). The uptick resulted from a 33% surge in Cloud ERP Suite revenues, highlighting the effectiveness of SAP’s Software-as-a-Service and Platform-as-a-Service solutions. SAP remains optimistic about the generative AI trend and expects it to positively impact revenues going forward. In April 2024, SAP announced significant advancements in AI for supply chain solutions, aiming to redefine productivity and efficiency in manufacturing sectors. During the second quarter of 2024, SAP announced a collaboration with IBM and Amazon Web Services to make strides in GenAI capabilities and unlock potential opportunities for businesses.It will also be taking up a restructuring program in 2024 (which is likely to conclude in 2025), whereby it plans to eliminate 8,000 positions across its operations to ensure the company’s skill set and resources are well-poised to meet future business requirements.SAP’s Zacks Rank & Stock Price PerformanceSAP currently carries a Zacks Rank #2 (Buy). Shares of the company have gained 62.5% in the past year compared with the sub-industry's growth of 24.1%.Image Source: Zacks Investment ResearchOther Stocks to ConsiderSome other top-ranked stocks from the broader technology space are Manhattan Associates, Inc. MANH, ANSYS, Inc. ANSS and Adobe Inc. ADBE.  MANH presently sports a Zacks Rank #1 (Strong Buy), whereas ANSS & ADBE carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.Manhattan Associates delivered an earnings surprise of 26.6%, on average, in the trailing four quarters. In the last reported quarter, MANH pulled off an earnings surprise of 22.9%. The Zacks Consensus Estimate for MANH has increased 9.2% in the past 60 days to $4.26.ANSYS delivered an earnings surprise of 4.8%, on average, in three of the trailing four quarters. In the last reported quarter, ANSS pulled off an earnings surprise of 28.9%. It has a long-term earnings growth expectation of 6.4%.Adobe delivered an earnings surprise of 2.7%, on average, in the trailing four quarters. In the last reported quarter, ADBE pulled off an earnings surprise of 2.1%. It has a long-term earnings growth expectation of 13%.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SAP SE (SAP): Free Stock Analysis Report Adobe Inc. (ADBE): Free Stock Analysis Report Manhattan Associates, Inc. (MANH): Free Stock Analysis Report ANSYS, Inc. 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