SALT LAKE CITY — Qualtrics is on cloud nine.
What happened: The survey and analytics company Qualtrics was acquired by German tech giant SAP on Sunday for a cool $8 billion, the Deseret News reports.
- The deal arrived just weeks ahead of Qualtrics' reported public stock offering, in which the company hoped to raise $500 million in new capital.
Reaction: The announced deal immediately spurred a number of articles and reaction from national business and tech media sources. We’ve collected many of them and share them with you below.
Forbes received an exclusive interview with Qualtrics CEO Ryan Smith and SAP chief executive Bill McDermott, who have spoken more consistently recently.
- Smith said working with SAP will be easy because of the synergy between the two companies.
- "I feel more at peace about this than going public," Smith says. "We didn't need to go public. We had no investor pressure, no financial pressure, and we had no employee pressure. We were going public for the sole reason of creating the category. And nothing is bigger for that than this combination. It would take 10 years to do what we are going to do tomorrow."
- McDermott said he like Qualtrics’ culture and hopes to implement it into his company.
- "Bringing their 'X data,' experience, to the 'O data,' the operational data we have, bringing that together can claim the most important category of all," McDermott says. "I think this is the biggest idea in my lifetime, and I can think of no person I'd rather run into the future with than Ryan Smith."
Bloomberg focused on Smith and the entire Smith family in its report on the company.
- “Ryan is known as the more gregarious and outgoing in a family of brainiacs — both his parents held doctorates and his father lectured about market research at the University of Oregon.”
- “After college, Ryan said he wanted adventure and went to South Korea to teach English. One of his early lessons in entrepreneurship came there. While most foreign tutors were scraping by on next to nothing, he decided to try private tutoring by putting flyers offering his teaching services in mailboxes.”
TechCrunch reported that McDermott said this deal will mean something for the future of tech.
- “The legacy players who carried their ’90s technology into the 21st century just got clobbered. We have made existing participants in the market extinct,” he said.
CNBC reported that SAP has been looking to add new cloud-based products as it moves away from desktop-focused software.
- “SAP has been counting on new cloud products for growth as the transition away from traditional desktop software has taken business from its core enterprise resource planning business.”
According to Fortune, the deal came at a perfect time.
- “It’s the perfect time for an acquirer to swoop in, which is what SAP did Sunday with its $8 billion acquisition of survey software company Qualtrics. It’s an astounding price for a company with annual revenues just shy of $300 million. In Qualtrics, though, SAP is adding to its arsenal of applications makers built primarily to deliver their wares online, compared with the old-fashioned way of shipping their software in packages. Like rival Oracle, SAP has been busy using its cash flow to add onto its core business software offering.”
A separate Bloomberg article said that SAP will need to justify the $8 billion deal. Some Qualtrics employees may not stick around after the deal, which could pose problems, Bloomberg reported.
- “To satisfy investor concerns, SAP will need to show it can generate a healthy return within a few years. If Qualtrics were to sustain its pace of growth, and gets close to its new parent’s broader profit margin after tax of 14 percent, investors would probably have to wait until about the middle of the next decade to see the sort of profits that would justify the company engaging in the most expensive acquisition in its history.”