WalkMe Stock Climbs In Pre-market On $1.5 Bln Deal To Be Bought By SAP

(RTTNews) - Software najor SAP SE (SAP) announced Wednesday a definitive agreement to acquire WalkMe Ltd. (WKME), an Israeli digital adoption platforms or DAPs company, for $14 per share in an all-cash transaction. The equity value of the deal is around $1.5 billion.

In pre-market activity on the Nasdaq, WalkMe shares were surging around 41.6% to trade at $13.65.

The offer price represents a 45% premium to WalkMe's closing share price on June 4. The Executive and Supervisory Boards of SAP and the board of directors of WalkMe have approved the deal.

The acquisition is expected to close in the third quarter, subject to customary closing conditions, including the receipt of WalkMe shareholder approval and necessary regulatory clearances.

SAP expects the impact of the transaction on its non-IFRS earnings per share for fiscal 2024 to be immaterial.

Tel Aviv, Israel-based WalkMe's solutions help organizations navigate constant technology change by providing users with advanced guidance and automation features. Its customers include IBM, Nestle, ThermoFisher Scientific, and the U.S. Dept. of Defense, among others.

WalkMe will soon launch the WalkMeX copilot, which will use WalkMe's contextual awareness and AI to suggest the best next step for any workflow, anywhere.

According to SAP, the planned combination complements its Business Transformation Management portfolio around SAP Signavio and SAP LeanIX solutions to help customers on their transformation journeys.

Christian Klein, CEO and member of the Executive Board of SAP SE, said, "Applications, processes, data and people are the four key elements of a successful business transformation. 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."