“The retail industry remains strategically important to SAP,” said Henning Kagermann, CEO of SAP. “As a disciplined investor, SAP established a premium price for this niche business. However, we concluded that neither our shareholders nor retail customers would benefit from an auction process that would further inflate the purchase price, and in the long run, not deliver the returns we demand. With 2,400 customers in the retail industry, we are the leading solution provider to the retail industry, and we will successfully meet any competitive challenge in this market segment. SAP continues to be the leading business applications vendor globally and in the U.S. and has consistently gained market share against its peer group for over two years both globally and in the U.S.”
“SAP’s leadership in retail comes from customers who choose us for the strategic value of our solutions and for our unparalleled industry-specific business process expertise. The best way to obtain leadership in an industry, in particular the retail industry, is to earn leadership through delivering customer value. We remain confident in SAP’s ability to lead the retail market by helping retail customers grow and be successful. We have the development resources and partnerships in place to continue leading the industry by providing retail customers with ongoing innovations to help them manage costs and enable growth.”
Some of the industry’s best-known retail brands run SAP, such as J. Crew, The Body Shop, JoAnn Stores, Tractor Supply and The Limited Inc. “As retail businesses increasingly utilize standard software packages to drive growth and competitive advantage, customers want the assurance that their investment in applications is protected and they want solutions from a vendor that understands their needs,” said Kagermann. “Through SAP NetWeaver and our portfolio of solutions, we will give retail customers the opportunity to develop new strategies and processes, increase flexibility in their operations and improve customer service.” SAP is withdrawing its tender offer and any shares previously tendered will be returned.
Source: SAP AG