SAP decision to spin out Qualtrics 20 months after investing $8B surprises market watchers

SAP decision to spin out Qualtrics 20 months after investing $8B surprises market watchers

When SAP announced it was spinning out Qualtrics on Sunday, a business it bought less than two years ago for an eye-popping $8 billion, it was enough to make your head spin. At the time, then CEO Bill McDermott saw it as a method to bridge the business’s core functional with consumer information, while obtaining […]
Sunday night the business announced it was spinning out the acquisition, giving its $8 billion child self-reliance, and essentially handing the business back to creator Ryan Smith, who will become the largest specific investor when this all over. It just could not find a way to co-exist with a younger, more nimble company like Qualtrics.” I think SAP spinning out Qualtrics is a sign that its close connection to develop symbiotic worth has actually stopped working. Leary says the inspiration for the initial offer was to give SAP a business that could sell beyond its existing customer base. “It seems like that was the inspiration for the acquisition, and the truth that SAP is spinning it off as an IPO 20 months after acquiring Qualtrics provides me the impression that things didn’t come together as anticipated,”he stated….

Why is SAP spinning Qualtrics out via an IPO?

Why is SAP spinning Qualtrics out via an IPO?

Over the weekend, software giant SAP announced that it will take Qualtrics public, with the German software company retaining a majority stake in the Utah-based “experience management” firm after its forthcoming debut. SAP paid $8 billion in cash for Qualtrics back in 2018, right before the smaller firm was set to go public. Chatting with […] …