Silver Lake and CPP Investments to acquire Qualtrics for $12.5 billion

Silver Lake and CPP Investments on Monday introduced plans to amass Qualtrics for $12.5 billion, marking the second time the survey software program firm has been purchased in lower than 5 years.

Shares of Qualtrics had been up greater than 6% Monday.

The corporations will purchase 100% of Qualtrics’ excellent shares, based on an announcement launched Monday. This consists of the bulk possession curiosity of SAP, which acquired Qualtrics for $8 billion in 2018.

The all-cash deal has been authorised by Qualtrics’ board of administrators and a Qualtrics committee of impartial administrators, based on the assertion. SAP additionally authorised the transaction in its capability as Qualtrics’ principal shareholder. No different shareholder approval is required.

Once the transaction is full, Qualtrics will develop into a privately held firm and its frequent inventory will not be listed on public markets. Shareholders, together with SAP, will obtain $18.15 per share in money beneath the phrases of the settlement, based on the assertion.

Morgan Stanley suggested Qualtrics on the deal, and Barclays acted because the monetary adviser to SAP. JPMorgan suggested Silver Lake.

Qualtrics will get most of its gross sales from subscriptions and likewise generates income from a research-on-demand possibility that current clients can use to get suggestions from “a curated group of respondents,” and from skilled providers.

Qualtrics was based in 2002 by brothers Ryan and Jared Smith and their dad, Scott, together with Stuart Orgill. The firm relies in Provo, Utah.

“I couldn’t be more excited for this step in our journey,” Ryan Smith, who serves as the corporate’s govt chairman, stated within the assertion. “Silver Lake’s belief in our vision and their amazing track record of helping founders and management teams speaks for itself. We look forward to working together and driving category-defining growth to build the next great enterprise cloud platform.”