WalkMe, an Israeli firm that provides website navigation and digital adoption solutions, sold out to enterprise software firm SAP for $1.5 billion. The Executive and Supervisory Boards of SAP SE and the board of directors of WalkMe approved the transaction for US $14 per share in an all-cash transaction.
The sale price is not so great for WalkMe. Three years ago the firm hit a valuation of $2.6 Billion when it held a NASDAQ IPO at a share price of $31. So, the $14 price announced now is less than half of that. However, WalkMe was only valued at $880 million on Tuesday, so SAP was willing to buy out the company for a 45% premium to WalkMe’s closing share price on June 4, 2024.
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WalkMe has been having troubles over the past few years and has made a number of cutbacks including layoffs. The company’s problems began long before the start of the ongoing war in Gaza.
Soon, WalkMe will launch the WalkMeX copilot, which will use WalkMe’s contextual awareness and AI to suggest the best next step for any workflow, anywhere. WalkMeX has the capability to always be on, serving as an overlay to any application, including copilots from different vendors that companies use in their landscapes. Integrating the strength of WalkMe’s adoption capabilities with SAP’s copilot Joule will boost AI assistant and productivity gains for all SAP customers. Additionally, integrating distinctive e-learning features in the SAP Enable Now solution with WalkMe will form the center of SAP’s people-centric transformation approach going forward.
Founded in 2011 by CEO Dan Adika and company president Rafael Sweary as a guidance and navigation tool, WalkMe declares its mission is to make digital adoption for employees and customers simple, while increasing enterprise productivity. Its Digital Adoption Platform (DAP) began as a platform-agnostic guidance system to simplify user experience. But, explains WalkMe, due to the needs of their customers, they have since developed new ways to identify and engage users across platforms and devices.
WalkMe states that its cloud-based Digital Adoption Platform enables organizations to “measure, drive and act to ultimately accelerate their digital transformations and better realize the value of their software investments.” Its code-free platform leverages a proprietary technology to provide visibility to an organization’s Chief Information Officer and business leaders, “while improving user experience, productivity and efficiency for employees and customers. Alongside walkthroughs and third-party integration capabilities, our platform can be customized to fit an organization’s needs.”
“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.”
