German business software giant SAP SE SAP 3.85%
said it would return Qualtrics International Inc. in public procurement, on a list that was expected to value the business at least 50% above what it paid for start-up two years ago.
Qualtrics, based in Provo, Utah, set a regulatory record on Monday in an initial price range of $ 20 to $ 24, which would value the company in full dilution between $ 12 and $ 14.4 billion, according to a person familiar with the matter. Prices may change based on investor feedback up to the day before the company’s shares begin trading.
SAP CEO Christian Klein said in July that the company would make Qualtrics public while it would remain the majority shareholder. The deal, he said, would allow Qualtrics to look for better non-SAP business opportunities.
Qualtrics shares will be traded on the Nasdaq with the symbol “XM”. SAP will hold a controlling stake in Qualtrics after the scheduled IPO, including all of the company’s Class B shares that grant it additional voting rights.
The publication comes amid a tumultuous period for the German technology company, partly caused by the pandemic. SAP, in April, left its dual executive structure, less than six months after adopting the leadership model. He said the measure was aimed at streamlining decision-making during the health crisis after the company had year-round guidelines. In October, the Germany-based Walldorf company narrowed its outlook again as coronavirus cases began to rise again.
The acquisition of Qualtrics by SAP, which closed in 2019, helped the company improve its competitiveness in the cloud computing market, SAP reported. Shares of companies that provide cloud services, such as Snowflake Inc.
and ServiceNow Inc.,
led by former SAP CEO Bill McDermott has risen during the pandemic as more companies have adopted these services. SAP shares are down 12.5% this year.
In its filing, Qualtrics said Silver Lake would buy $ 550 million of its shares, including $ 15 million in shares at $ 21.64 per share and the rest at the IPO as part of the offer. Silver Lake, earlier this year, provided funding to Airbnb, a pandemic hit Inc.
with guarantees that, when exercised, would value the company at $ 18 billion. Airbnb was worth $ 47 billion on a fully diluted basis at its IPO when it debuted in December. Its stock price has more than doubled since it debuted.
Qualtrics, in filing the regulations, said sales for this year through the end of September rose to $ 415 million, up from $ 309 million in the previous period. It recorded a net loss of $ 258 million during the first nine months, compared to a loss of $ 860.4 million in the same period last year.
Qualtrics said it has more than 12,000 customers and more than 3,300 employees spread across more than 25 countries. The company was founded in 2002 by Ryan Smith, who served as CEO until this summer and remains the company’s president. Zig Serafin, a former Microsoft Corp.
executive, assumed the position of CEO in July.
The planned IPO helps limit a year in which tech companies have seen their valuations rise to the highest levels since the point bubble as of early 2000. Now, Airbnb is valued at about 93 billion dollars, much more than traditional hosting companies like Marriott International Inc.
or Hilton Worldwide Holdings Inc.
Snowflake Inc., a data storage company that made its commercial debut in September, is worth more than 180 times the $ 89 million revenue in the twelve months to October.
Write to Matt Grossman to [email protected] and Maureen Farrell to [email protected]
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