SAP, the enterprise software giant, is set to acquire WalkMe, a “digital adoption” platform provider, in a $1.5 billion all-cash deal. This move comes as SAP aims to enhance its enterprise offerings by automating in-app support for its customers. WalkMe, founded in Israel in 2011, initially focused on simplifying website navigation through real-time, contextual on-screen guidance. Over time, it expanded its platform to cater to both consumers and enterprises, offering features like guiding users through new features and onboarding new employees.
One of WalkMe’s key offerings is providing insights into end-user behavior to offer additional support at critical points where users are likely to exit an application. This focus on automation and support tools is what SAP sees as valuable for its enterprise customers. Despite WalkMe’s valuation plummeting during the pandemic period, the company has shown resilience with a 4% year-on-year revenue increase reported in Q1 of 2024. Its recent unveiling of WalkMeX, an AI-powered copilot that suggests the best next step for any workflow, has further boosted its shares.
SAP, on the other hand, has been experiencing tremendous growth, with its valuation reaching an all-time high of $230 billion this year. The acquisition of WalkMe is part of SAP’s strategy to complement its previous acquisitions, such as Signavio and LeanIX, and help companies transform for the modern software era. By integrating WalkMeX with its own Joule copilot, SAP aims to provide enhanced support and value to its end users in adopting new solutions and features.
The acquisition is expected to close in Q3 of 2024, pending regulatory and shareholder approval. With this move, SAP is solidifying its position as a leader in enterprise software and ensuring that its customers can maximize the value of their IT investments through efficient adoption of new technologies.
