Through the agreement, a SAP subsidiary would acquire all outstanding common stock shares of SuccessFactors. SuccessFactors’ board approved the transaction, which is expected to close in the first quarter of 2012.
As a result of the agreement, SuccessFactors’ technology and team will become a part of SAP. The company indicated that combining the companies’ solutions will create, “end-to-end offering of cloud and on-premise solutions for managing all relevant business processes.”
“The cloud is a core of SAP's future growth, and the combination of SuccessFactors' leadership team and technology with SAP will create a cloud powerhouse. The acquisition will help us address the top priority for CEOs globally ““ managing people and talent,“ said Bill McDermott, Co-CEO, SAP.
SuccessFactors, headquartered in San Mateo, Calif. with more than 1,450 employees, provides cloud-based human capital management solutions and is believed to operate the largest scale of cloud users, according to the release.
The company’s CEO, Lars DalGaard, will lead the cloud business of SAP in addition to remaining SuccessFactors’ CEO, which will remain independent and named, “SuccessFactors, an SAP company.“