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SAP has announced a definitive agreement to acquire Israeli-based digital adoption platform (DAP) provider WalkMe Ltd. Valued at approximately $1.5 billion as an all-cash transaction, the acquisition is set to strengthen SAP’s capabilities in supporting end-user adoption of its technologies. Approved by both companies’ boards, the deal offers $14 per share, a 45% premium to WalkMe’s closing share price on June 4, 2024.

The catalyst behind the acquisition: Tailored user support

SAP’s acquisition of WalkMe is a strategic move to bolster its Business Transformation Management portfolio, particularly around its Signavio and LeanIX solutions. WalkMe’s digital adoption platform (DAP) provides guidance and automation features that simplify the execution of workflows across various applications.

Christian Klein, CEO of SAP, emphasized the significance of the acquisition, stating, “Applications, processes, data, and people are the four key elements of a successful business transformation. By acquiring WalkMe, we are doubling down on the support we provide our end users, helping them to quickly adopt new solutions and features to get the maximum value out of their IT investments.”

WalkMe’s platform, known for its AI-powered capabilities to detect user friction and provide tailored support, will enhance SAP’s ability to drive digital transformation for its clients. The integration of WalkMe’s solutions with SAP’s offerings, including its forthcoming WalkMeX copilot, aims to leverage AI for suggesting optimal workflow steps, thereby increasing productivity and user satisfaction.

Integration with Joule Copilot to boost productivity

Dan Adika, CEO of WalkMe, expressed enthusiasm about the merger, noting, “We are thrilled to join forces with SAP. This acquisition marks a significant milestone in our journey, providing us with the resources and customer base necessary to enhance our product offerings and expand our market reach. By leveraging SAP’s extensive ecosystem, we are poised to unlock substantial growth opportunities and deliver even greater value to our customers.”

The addition of WalkMe to SAP’s portfolio is anticipated to drive productivity gains, particularly through the integration with SAP’s AI copilot, Joule, which is designed to provide secure and efficient guidance through natural language processing. As WalkMe’s technologies merge with SAP’s extensive suite of tools, SAP’s clients should expect to benefit from more efficient, streamlined workflows.

Impact on the broader ecosystem

By combining WalkMe’s innovative DAP solutions with SAP’s robust enterprise software ecosystem, the acquisition aims to deliver greater customer value, driving higher productivity and more seamless technology adoption.

With Walkme’s platform capabilities integrated into SAP’s offerings, MSPs can offer more comprehensive, easier-to-use solutions to their clients, ensuring smoother transitions and higher adoption rates. Resellers will also be able to leverage the enhanced functionality and increased demand for SAP’s integrated DAP solutions, potentially expanding their market reach and customer base.

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