SAP to Acquire SuccessFactors

On Saturday, December 3, SAP announced that SAP America has entered into a merger agreement with SuccessFactors, the market-leading provider of cloud-based human capital management (HCM) solutions. To read the SAP press release in full, click here.

SuccessFactors is widely acknowledged as the fastest growing provider of cloud-based HCM solutions, showing 59 percent year-over-year growth in the first nine months of 2011. More than 80 percent of new sales are generated from applications developed in the past five years. Furthermore, with more than 3,500 customers in 168 countries and 15 million subscription seats, the company is believed to have the largest number of paying cloud users.

As SAP continues to focus on growing its on-demand segment, the experience of SuccessFactors in this area will be a significant addition to SAP’s own cloud strategy and portfolio.  SuccessFactors solutions are complementary to SAP’s own on-demand solutions – like SAP Business ByDesign and line-of-business applications like SAP Sales OnDemand – and are not meant to replace any offerings.

SuccessFactors is to remain independent and be renamed, SuccessFactors, an SAP company. Lars Dalgaard, the CEO of SuccessFactors, will retain his position at his company while taking on new duties as leader of the cloud business of SAP. In addition, chairman of SAP’s supervisory board, Hasso Plattner, has recommended Dalgaard be appointed to the SAP executive board.