Qualtrics to be taken private for $12.5B

Confirming latest rumors, Qualtrics Worldwide Inc. at the moment announced that it has agreed to be acquired by Silver Lake and CPP Investments for $12.5 billion.

The all-cash transaction values Qualtrics at $18.15 per share. That’s 73% larger than the final unaffected closing value of the corporate’s inventory. The deal will likely be financed with fairness funding from Silver Lake and CPP Investments, in addition to $1 billion in debt. 

Silver Lake is a non-public fairness agency targeted on the know-how sector. CPP Investments, also referred to as Canada Pension Plan Funding Board, is Canada’s largest pension fund. Studies that CPP Investments and Silver Lake could purchase Qualtrics first emerged final week.

Nasdaq-listed Qualtrics promote software program that enterprises use to gather suggestions from workers and prospects. The corporate has greater than 18,000 prospects worldwide, together with over 90% of the Fortune 100.

Human assets groups use Qualtrics’ software program to run worker surveys. An organization might, for instance, use the software program to ballot staffers in regards to the effectiveness of a brand new worker coaching program. Qualtrics additionally gives automation options that make it simpler to research the collected suggestions. 

For product groups, Qualtrics provides a model of its platform that may acquire enter from present and potential prospects. A software program maker might use the platform to evaluate buyer reactions to a brand new product concept earlier than constructing a prototype. It additionally allows corporations to gather person suggestions on present merchandise.

Alongside its core suggestions assortment options, Qualtrics provides instruments that assist corporations put the info they collect to make use of. One such instrument, Predict iQ, can analyze knowledge from buyer polls to establish when an organization’s customers are vulnerable to leaving. For advertising and marketing departments, it gives the flexibility to check completely different variations of an advert and decide which variation resonates probably the most with customers. 

“Qualtrics is turning into central to how companies make mission important buyer and worker choices that improve income and operational effectivity,” stated Qualtrics Chief Government Officer Zig Serafin (pictured). “With our AI-powered platform and automatic actions, we assist corporations ship distinctive experiences and construct deep relationships with their prospects and workers at scale.”

Silver Lake and CPP Investments are transferring to purchase Qualtrics following 4 years during which it skilled fast development. Qualtrics was acquired by SAP SE for $8 billion in early 2019. Since then, the corporate has greater than tripled its income and grew its buyer base from 10,000 organizations to about 18,000.

Alongside the way in which, SAP listed Qualtrics’ shares on the Nasdaq in a 2020 public providing. The enterprise software program large stays its largest shareholder with a 71% stake. This morning, SAP indicated that it’s going to approve the buyout provide from Silver Lake and CPP Investments.

“Silver Lake has each the operational experience and the observe document with software program corporations to assist Qualtrics lengthen its management within the XM class it pioneered,” stated SAP Chief Government Officer Christian Klein. “Since we acquired Qualtrics in 2019 the corporate has greater than tripled its income whereas delivering profitability.”

Qualtrics’ gross sales grew 23% year-over-year, to $389.1 million, final quarter. It additionally posted $16 million in adjusted web revenue. The corporate is projecting income of about $1.66 billion for the present fiscal yr.

Silver Lake and CPP Investments count on to shut the acquisition within the second half of 2023. After the deal’s completion, Serafin will proceed to guide the corporate. Qualtrics additionally stated it should proceed to companion with former guardian firm SAP on joint engineering and go-to-market initiatives. 

Photograph: SiliconANGLE