SAP is continuing with their acquisition spree and their latest acquisition is SuccessFactors, a cloud-based human capital management provider. SAP America will be paying US $3.4 billion in cash for the company.
This acquisition will set up a head on competition between SAP and Oracle in the market of cloud computing.
Post this deal, the founder as well as CEO of SuccessFactors, Lars Dalgaard, will be joining SAP for leading the cloud business whereas still remaining the head of SuccessFactors that will operate as an independent company.
The $3.4 billion acquisition involves $40 per share, which is 52 per cent excess of the value of SuccessFactors' shares, confirmed SAP in a statement, reported Sydney Morning Herald.
SuccessFactors is a San Mateo, California, based company that provides management as well as personnel-focused systems and on the other hand, SAP happens to be the "largest maker" of business-management software.
This acquisition will be helping SAP to cover the cloud computing market and customers will get the facility to rent software that will be delivered via web instead of installing it on the systems. This method has been considered a safe way for outsourcing data centres at the same time reducing the requirement of hardware.