SAP Acquires WalkMe to Boost Digital Adoption & Productivity

Enterprise software giant SAP has announced plans to acquire WalkMe, a leading digital adoption platform (DAP) provider, for US$1.5bn in a move that underscores SAP’s strategy to help customers maximise the value from technology investments by driving user adoption and productivity.

WalkMe's solutions sit on top of an organisation's existing applications and provide context-aware guidance, automation and AI-driven suggestions to streamline workflows across any software. This frictionless approach boosts software utilisation and accelerates transformation initiatives.

The acquisition, announced during SAP’s 2024 Sapphire event in Orlando, Florida, will fold WalkMe's digital adoption capabilities into SAP's Business Transformation Management portfolio, complementing solutions like SAP Signavio for process mining and SAP LeanIX for enterprise architecture management. Integrating WalkMe with SAP Enable Now will create a unified platform for user enablement and change management.

A key piece of the combination is WalkMe's forthcoming WalkMeX copilot product. Using contextual awareness and AI, WalkMeX will proactively surface next-best actions and recommendations as employees navigate processes across applications from SAP, competitors and other vendors. SAP plans to deeply integrate WalkMeX with its own Joule conversational AI assistant to turbocharge productivity gains for customers.

"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."

SAP and WalkMe: Acquisition to unlock growth opportunities and deliver greater value

The transaction, valued at US$1.5 billion or US$14 per share - a 45% premium over WalkMe's June 4 closing price - is expected to close in Q3 2024 pending approvals. SAP says it expects an immaterial impact to 2024 non-IFRS earnings from the deal.

"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."

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