It appears experience management (XM) firm Qualtrics will be involved in an Initial Public Offering (IPO) after all, with current owner SAP announcing plans to spin the company out and take it public.
SAP acquired Qualtrics for roughly $8 billion almost two years ago, at which point Qualtrics was already investigating the possibility of an IPO.
The move is designed to afford Qualtrics greater autonomy, allowing the firm to work with clients and partners in a more flexible manner.
“SAP's acquisition of Qualtrics has been a great success and has outperformed our expectations with 2019 cloud growth in excess of 40 percent, demonstrating very strong performance in the current setup," said Christian Klein, SAP CEO.
According to Forbes, the company reported revenue of about $188 million in Q1 2020 and will release its yearly reports later today.
If SAP delivers on its plan to make Qualtrics public, the company will remain majority owner, with Qualtrics founder and CEO Ryan Smith expected to be the largest individual shareholder.
There is still no official timeframe for the IPO, but Smith and his team are expected to remain at the helm going forward.