The Qualtrics deal outranks all other acquisitions of enterprise software companies in terms of first exits by VC-backed startups.
The global software-as-a-service (SaaS) industry is projected to reach $75B+ by 2020. Providers like SAP, Microsoft, Oracle, and Salesforce are racing to offer the best products on the market and capture a greater share of corporate technology spending.
The Qualtrics acquisition is also the largest VC-backed enterprise software acquisition in history (in terms of first-time exits), according to CB Insights’ data. Its exit valuation beat Microsoft’s $7.5B acquisition of GitHub in October 2018.
|2||Qualtrics||Acquired by SAP||$8.00B||11/11/2018|
|3||GitHub||Acquired by Microsoft||$7.50B||10/26/2018|
|7||AppDynamics||Acquired by Cisco||$3.70B||1/24/2017|
|8||Octane||Acquired by E.piphany||$3.41B||5/8/2000|
Qualtrics had already filed its S-1 and had planned to raise as much as $495M as part of its upcoming IPO.
The company provides product research and customer surveys to more than 9,000 customers globally, including over 75% of the Fortune 100 companies, according to its recent S-1 filing.
While SAP’s Cloud Business Group will certainly benefit from Qualtrics’s products and services, its current clients will likely provide ongoing lead generation for SAP as well.
Qualtrics expects full-year 2018 revenue to exceed $400M and projects a forward growth rate of more than 40%, according to SAP’s announcement of the acquisition.
Qualtrics will maintain it’s leadership, personnel, and branding following the acquisition, and will operate as an entity of SAP’s Cloud Business Group.
Note: We excluded social networking platforms like LinkedIn from our list of enterprise software exits.
This report was created with data from CB Insights’ emerging technology insights platform, which offers clarity into emerging tech and new business strategies through tools like:
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