WalkMe IPO.

SAP acquiring digital adoption platform WalkMe for $1.5 billion

The Israeli company was valued at less than $880 million on Tuesday, meaning the offer of $14 per share represents a 45% premium 

Enterprise software giant SAP is acquiring Israeli company WalkMe for $1.5 billion in an all-cash transaction. WalkMe was valued at less than $880 million on Tuesday, meaning the offer of $14 per share represents a 45% premium. The company went public on Nasdaq at a $2.5 billion valuation in June 2021, raising $286 million. This is SAP's 12th acquisition of an Israeli company.
WalkMe, founded in 2011 by Rafael Sweary and Dan Adika, has developed a platform for adopting digital technologies without the need to write additional code. The concept behind WalkMe’s solution is to help organizations measure, promote, and act in order to maximize the impact of digital transformation processes, thereby improving the efficiency of the software the organization uses.
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נציגי ווקמי במעמד פתיחת המסחר במניה אתמול בנאסד"ק
נציגי ווקמי במעמד פתיחת המסחר במניה אתמול בנאסד"ק
WalkMe IPO.
WalkMe underwent several rounds of layoffs last year, parting ways with 112 employees last April in addition to the 43 employees who were laid off at the beginning of 2023. The second round of layoffs totaled 10% of the company's employees.
WalkMe decided last year to reduce its activity with small and medium-sized businesses and double down on organizations that employ over 500 people.
In the first three months of the year, the company recorded revenues of $69 million, reflecting a slow growth rate of 4% compared to the corresponding quarter. The company is still losing money and recorded an operating loss of $8 million, an improvement over the previous loss of $25 million. However, the activities of WalkMe generate cash, so most of the IPO funds still remain in its coffers, amounting to $339 million, which SAP will receive as part of the deal.
WalkMe will be integrated into SAP's development center in Israel, which employs 900 people in two locations: Ra'anana and Tel Aviv. The center is based on the acquisitions of 11 startups over the years, most of them in the last two decades. The acquisition of WalkMe is SAP's largest transaction in Israel to date. The Israeli center is responsible for the SAP cloud platform and leads the fields of user identity management, privacy, personalization, and user experience.
“Applications, processes, data and people are the four key elements of a successful business transformation,” said Christian Klein, CEO and member of the Executive Board of SAP SE. “By acquiring WalkMe, we are doubling down on the support we provide our end users, helping them to quickly adopt new solutions and features to get the maximum value out of their IT investments.”
“We are thrilled to join forces with SAP. This acquisition marks a significant milestone in our journey, providing us with the resources and customer base necessary to enhance our product offerings and expand our market reach,” said Dan Adika, CEO of WalkMe. “By leveraging SAP’s extensive ecosystem, we are poised to unlock substantial growth opportunities and deliver even greater value to our customers. Together, we look forward to a future filled with innovation and exceptional service.”