SAP buys Callidus for $2.4 billion

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SAP has acquired US-based sales software firm Callidus in a $2.4 billion push to speed its corporate transition.

The move should help SAP strengthen its position as a market leader in front-office software used in areas such as sales and marketing, building on its strength in back-office software used by many major.

SAP is currently undergoing a transition from selling software on a one-off basis, to selling subscription-based services, which take longer to pay off. With that in mind, the company’s main goals are to streamline its overall business, and consequently to bolster margins.

Callidus will now work with SAP on further development of its S/4 HANA cloud platform, now counting almost 8,000 customers.

SuccessFactors, the human resources application which SAP acquired in 2011 for $3.4 billion, will also be fully migrated to the cloud this year.

“This year, the entire company will be on one platform,” McDermott told Reuters after SAP announced 2017 results that met its twice-raised guidance but came in just shy of analyst expectations.

McDermott described Callidus as a “tuck-in” deal, which wouldn’t have a huge effect on the company’s bottom line, but he valued it for its leadership and innovation.

“We did that to get another cloud revenue stream in the mix,” McDermott said.

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