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Qualtrics to be acquired by Silver Lake for $12.5B
The Fly

Qualtrics to be acquired by Silver Lake for $12.5B

Qualtrics (XM) announced that it has entered into a definitive agreement to be acquired by Silver Lake, in partnership with Canada Pension Plan Investment Board, in an all-cash transaction that values Qualtrics at approximately $12.5B. Silver Lake and its co-investors, together with CPP Investments, will acquire 100% of the outstanding shares Silver Lake does not already own, including the entirety of SAP‘s majority ownership interest. Qualtrics will become an independent, privately held company positioned to drive category-defining innovation and efficient growth at scale on its path to becoming the next great enterprise cloud software platform. Under the terms of the agreement, Qualtrics shareholders, including SAP, will receive $18.15 per share in cash. This represents a 73% premium to the 30-day volume-weighted average price on January 25, 2023, the last full trading day prior to SAP’s announcement to explore a sale of its stake in Qualtrics, and a 62% premium relative to the unaffected closing price on January 25, 2023. Qualtrics will continue to be led by CEO Zig Serafin, and the company will remain headquartered in Provo, Utah and Seattle, Washington. The transaction is fully financed by equity commitments from Silver Lake and co-investors together with $1.75B in equity from CPP Investments and $1B in debt. Qualtrics’s board of directors, as well as a Qualtrics committee of independent directors, has approved the transaction, which has also been approved by SAP (SAP) in its capacity as the principal shareholder of Qualtrics. No other shareholder approval is required. The transaction is expected to close in the second half of 2023, subject to the satisfaction of customary closing conditions, including the receipt of the requisite regulatory approvals. Upon completion of the transaction, Qualtrics’s common stock will no longer be listed on any public market. Qualtrics and SAP intend to maintain a go-to-market and technology partnership to both service existing joint customers and target new customer opportunities.

Published first on TheFly

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