SAP will acquire CallidusCloud, the leader in cloud-based lead-to-money solutions, bolstering its customer relationship management market position with what will become a comprehensive front office suite, in a deal worth around US$2.4 billion.
CallidusCloud, which has a full suite of sales performance management (SPM) and configure-price-quote (CPQ) solutions, including sales enablement, sales analytics and customer engagement, has been a partner of SAP for some years, selling jointly to customers. The suite is tailored to the specific needs of salespeople on the ground, linking sales-related information such as pricing, incentives, and commissions, to enterprise resource planning systems. SAP’s existing sales portfolio will be enriched with sales planning and forecasting, territory management and pipeline management.
For SAP, the addition of CallidusCloud alongside its existing Customer Engagement suite will link front and back offices, align sales, compensation and corporate goals, and enable real-time data flow between the field and finance department.
“SAP is connecting the back office to the front office in this consumer-driven growth revolution,” said Bill McDermott, CEO, SAP. “Our customers are focused on reinventing sales, service, marketing and commerce. The addition of CallidusCloud aligns perfectly to SAP’s innovation strategy to transform the front office. SAP gives CallidusCloud the global scale to accelerate its already impressive growth.”
CallidusCloud CEO Leslie Stretch said the company was “super excited to join forces with SAP”.
“This move gives customers precisely what they want, the market leading Sales Performance (SPM), Sales Execution (CPQ) and Sales Enablement clouds combined with SAP Hybris and S/4HANA. This is true Lead to Money, beyond CRM and beyond Quote-to-Cash. It’s the joined-up Front Office and Back Office Cloud everyone needs for 21st century business. In addition, the purchase price provides substantial value to our stockholders.”
On the completion of the transaction, SAP will consolidate all CallidusCloud product assets within SAP Hybris solutions, as part of SAP’s Cloud Business Group. The SAP Cloud Platform will be used for the technical integration of CallidusCloud solutions, and the existing management team will continue to lead CallidusCloud.
The acquisition was unanimously approved by the CallidusCloud board of directors, with the transaction expected to be completed in the second quarter of 2018.