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SAP's Litmos Solutions to be Acquired by Francisco Partners
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SAP SE (SAP - Free Report) is divesting SAP Litmos to a global investment firm, Francisco Partners for an undisclosed amount. The acquisition is anticipated to complete in the fourth quarter of 2022, pending customary regulatory approvals.
SAP Litmos was established in 2007 and provides online and offline training solutions to over 30 million people in 150 countries, across 35 languages, per company reports.
Litmos was previously acquired by CallidusCloud in 2011, then SAP took over in 2018, and now Francisco Partners will acquire it in 2022.
SAP has chosen to sell Litmos solutions to Francisco Partners due to the overlap in the value propositions and features between the SAP SuccessFactors Learning solution and the SAP Litmos solutions.
Francisco Partners has invested in over 400 technology companies for 20 years, per company reports. It also has experience in divisional carve-outs and education and human capital technology market.
Working as an independent company with Francisco Partners, Litmos solutions will experience greater flexibility so that it can focus all its investments and operations on improving customer satisfaction, proprietary content library and third-party integrations.
On Jul 21, 2022, SAP announced the acquisition of Askdata for an undisclosed amount to tap the growing demand for data and analytics solutions. Askdata is a start-up specializing in search-driven analytics that uses machine learning algorithms to provide a personalized experience to users. Natural language processing is combined with artificial intelligence technologies, enabling users to quickly find the answer to any data question.
SAP provides enterprise resource planning software, which caters to the needs of small and medium businesses to large, global enterprises.
The company reported second-quarter 2022 non-IFRS earnings of €0.96 per share, down 45% from the year-ago quarter’s levels. The downside was caused by tougher year-over-year comparisons pertaining to contribution from Sapphire Ventures.
Total revenues, on a non-IFRS basis, were €7.517 billion ($8.009 billion), up 13% year over year (up 5% at constant currency or cc), driven by strength in the cloud business.
Software licenses and support revenues totaled €3.403 billion, down 2% (down 7% at cc) year over year. The company further noted that non-IFRS software license revenues of €426 million declined 34% (down 38% at cc) year over year.
However, the suspension of Russian operations amid the ongoing Ukraine war is expected to affect overall revenues by €300 million in 2022. Stiff competition and increasing research and development costs are concerns.
SAP currently carries a Zacks Rank #4 (Sell). Shares of the company have lost 37% compared with the industry’s fall of 8.4% in the past year.
The Zacks Consensus Estimate for CDNS 2022 earnings is pegged at $4.11 per share, rising 5.7% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.7%.
Cadence’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 9.8%. Shares of CDNS have jumped 29% in the past year.
The Zacks Consensus Estimate for BMI’s 2022 earnings is pegged at $2.30 per share, up 6% in the past 60 days.
Badger Meter’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, with the average being 12.6%. Shares of BMI have lost 0.8% of their value in the past year.
The Zacks Consensus Estimate for Arista Network’s 2022 earnings is pegged at $3.99 per share, increasing 8.4% in the past 60 days. The long-term earnings growth rate is anticipated to be 18.6%.
Arista Network’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 10.1%. Shares of ANET have increased 43% in the past year.
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SAP's Litmos Solutions to be Acquired by Francisco Partners
SAP SE (SAP - Free Report) is divesting SAP Litmos to a global investment firm, Francisco Partners for an undisclosed amount. The acquisition is anticipated to complete in the fourth quarter of 2022, pending customary regulatory approvals.
SAP Litmos was established in 2007 and provides online and offline training solutions to over 30 million people in 150 countries, across 35 languages, per company reports.
SAP SE Price and Consensus
SAP SE price-consensus-chart | SAP SE Quote
Litmos was previously acquired by CallidusCloud in 2011, then SAP took over in 2018, and now Francisco Partners will acquire it in 2022.
SAP has chosen to sell Litmos solutions to Francisco Partners due to the overlap in the value propositions and features between the SAP SuccessFactors Learning solution and the SAP Litmos solutions.
Francisco Partners has invested in over 400 technology companies for 20 years, per company reports. It also has experience in divisional carve-outs and education and human capital technology market.
Working as an independent company with Francisco Partners, Litmos solutions will experience greater flexibility so that it can focus all its investments and operations on improving customer satisfaction, proprietary content library and third-party integrations.
On Jul 21, 2022, SAP announced the acquisition of Askdata for an undisclosed amount to tap the growing demand for data and analytics solutions. Askdata is a start-up specializing in search-driven analytics that uses machine learning algorithms to provide a personalized experience to users. Natural language processing is combined with artificial intelligence technologies, enabling users to quickly find the answer to any data question.
SAP provides enterprise resource planning software, which caters to the needs of small and medium businesses to large, global enterprises.
The company reported second-quarter 2022 non-IFRS earnings of €0.96 per share, down 45% from the year-ago quarter’s levels. The downside was caused by tougher year-over-year comparisons pertaining to contribution from Sapphire Ventures.
Total revenues, on a non-IFRS basis, were €7.517 billion ($8.009 billion), up 13% year over year (up 5% at constant currency or cc), driven by strength in the cloud business.
Software licenses and support revenues totaled €3.403 billion, down 2% (down 7% at cc) year over year. The company further noted that non-IFRS software license revenues of €426 million declined 34% (down 38% at cc) year over year.
However, the suspension of Russian operations amid the ongoing Ukraine war is expected to affect overall revenues by €300 million in 2022. Stiff competition and increasing research and development costs are concerns.
SAP currently carries a Zacks Rank #4 (Sell). Shares of the company have lost 37% compared with the industry’s fall of 8.4% in the past year.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader technology space are Cadence Design Systems (CDNS - Free Report) , Badger Meter (BMI - Free Report) and Arista Networks (ANET - Free Report) . Cadence Design Systems, Badger Meter and Arista Networks (ANET - Free Report) each sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CDNS 2022 earnings is pegged at $4.11 per share, rising 5.7% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.7%.
Cadence’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 9.8%. Shares of CDNS have jumped 29% in the past year.
The Zacks Consensus Estimate for BMI’s 2022 earnings is pegged at $2.30 per share, up 6% in the past 60 days.
Badger Meter’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, with the average being 12.6%. Shares of BMI have lost 0.8% of their value in the past year.
The Zacks Consensus Estimate for Arista Network’s 2022 earnings is pegged at $3.99 per share, increasing 8.4% in the past 60 days. The long-term earnings growth rate is anticipated to be 18.6%.
Arista Network’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 10.1%. Shares of ANET have increased 43% in the past year.