Callidus Software Inc. (NASDAQ: CALD) shares got a boost Tuesday from plans by SAP SE (NYSE: SAP) to acquire Callidus for $36 per share.
A release from the company, located in Dublin, California revealed Monday that the per share purchase price of $36.00 represents a 21% premium over the 30-day volume weighted average price per share and a 28% premium over CallidusCloud's 90-day volume weighted average price per share. The per share price represents an enterprise value of approximately $2.4 billion.
The German-based SAP has elected to fund the transaction with existing cash balances and an acquisition term loan. The transaction is expected to close in the second quarter of 2018, subject to approval from CallidusCloud stockholders, clearances by the relevant regulatory authorities, and other customary closing conditions.
The transaction is expected to be essentially neutral to SAP's non-IFRS earnings per share for fiscal 2018 and accretive to SAP's non-IFRS earnings per share for fiscal 2019.
The acquisition gives SAP immediate leadership in the Lead to Money space that includes sales performance management (SPM) and configure-price-quote (CPQ). CallidusCloud offers a full suite of SPM and CPQ solutions, including sales enablement, sales analytics and customer engagement.
Said Bill McDermott, CEO of SAP’s American operations, "SAP is connecting the back office to the front office in this consumer-driven growth revolution.
"Our customers are focused on reinventing sales, service, marketing, and commerce. The addition of CallidusCloud aligns perfectly to SAP's innovation strategy to transform the front office. SAP gives CallidusCloud the global scale to accelerate its already impressive growth. These two strong companies will be better together, help the world run better and improve people's lives."
Callidus shares hiked $3.28, or 10%, in Tuesday’s first hour of trade, to $35.98, while SAP shares ditched 76 cents to $112.78.
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