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SAP Acquires Qualtrics To Overcome Data Issues

Daniel Chase

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stock_price_SAP

Everyone and everything has a value, and thus, everyone and everything has a price to be paid. When a company goes public, they open the floodgates for investors, consumers, and industry rivals to gain access to all information that becomes transparent following an initial public offering (IPO). In some cases, an IPO can garner significant interest from investors and result in a spontaneous acquisition from a company with the necessary capital to do so.

Ryan Smith, CEO, and co-founder of Qualtrics, a survey software developer based in Provo, Utah filed for an IPO earlier this month, in hopes of taking his private company to the next level. What he didn’t realize was that, en route to ringing the opening bell, his company would be acquired. The company had been recently valued at $2.5 billion, after raising around $450 million from venture capital firms like Accel, Insight Venture Partners and Sequoia Capital, according to Fortune. Qualtrics was predicted to have one of the hottest IPOs this week and then SAP SE (SAP) came in for the kill. 

“I feel more at peace about this than going public. We didn’t need to go public. We had no investor pressure, no financial pressure, and we had no employee pressure. We were going public for the sole reason of creating the category. And nothing is bigger for that than this combination. It would take ten years to do what we are going to do [with SAP].”

Ryan Smith, Chief Executive Officer & co-founder, Qualtrics International 

The German-based software behemoth announced late Sunday evening that it was purchasing Qualtrics for $8 billion in cash taken from a silver briefcase just like in the movies. SAP SE (SAP) had been interested in Qualtrics for quite some time due to the company’s aspirations for increased offerings in the customer relations management sector of their business. Given that the company has grown to be the biggest software company in Europe, and the twelfth largest tech company based on Forbes 2018 ranking of public companies, the acquisition of a company with data analytics software ready to meet high demands seemed like a lucrative decision. 

“Yes, we did pay a handsome price, but it’s well deserved. This is the most simple, if not the easiest thing we’ve ever done on the M & A front. Qualtrics is our crown jewel.”

Bill McDermott, Chief Executive Officer, SAP

Representing the largest-ever purchase of a VC-backed enterprise software company, SAP’s (SAP) acquisition of Qualtrics will allow the two companies to dominate the CRM space, a sector currently with Salesforce at the top of the food chain. Every tech exec worth their weight in bitcoin knows that access to an understanding of consumer data directly correlates to profit or lack thereof. Qualtrics has picked up speed over the last few years because of its ability to collect data on customers, brands, employees, and products to give companies key insights on how to operate and/or augment business practices. Hence, SAP’s (SAP) decision to gain access to quality data analytics. 

Though the acquisition may benefit SAP (SAP) in the long-run, the market responded negatively to the price the company agreed to pay for Qualtrics. SAP’s shares dropped 5% in early Frankfurt trading, selling for $101.34 per share. Despite analyst criticism, McDermott, SAP’s CEO, stands by the company’s acquisition deal and went on to explain how the deal will have an effect similar to Facebook’s (FB) acquisition of Instagram.

“Under Armor runs their whole business on SAP, everything from their customer relationships in every single channel on any device, including direct to consumer, wholesale, and retail. We know the prior history of the consumer, but what we don’t know is why the customer feels a certain way about Under Armour’s Hovr shoe…But you know who knows that? Qualtrics knows that. They know why the customer likes the size, the fitt, the color style..”

Bill McDermott, Chief Executive Officer, SAP

Good qualitative data, and subsequent insight to how these statistics, can help a company grow as well as present a potential opportunity for investors looking into the sector. SAP (SAP) acquired Qualtrics to take their position a leader in the tech industry to greater heights and, though they paid more than a pretty penny, we will see in the coming months if the investment pays off. 

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Energy

Where Will Oil Go After This Week’s Price Hit?

Jon Phillip

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Even though oil had been taking a beating over the last 2 trading sessions, its price rose to $69 per barrel on Friday. However, oil prices are experiencing the worst week of 2019 mainly due to potential economic slowdown and ever-growing oil inventories. US oil inventories have not been this high since July of 2017. And to top it all off, the trade war between the US and China is growing wearier every day further affecting oil prices.

Naeem Aslam, the chief market analyst at TF Global Markets, stated, “Clearly, bargain hunters are back in town.” He later added, “However, it is still set to record the worst week of the year and this is due to the increase in trade war tensions between the U.S. and China.”

Global Scale

The global benchmark for oil, Brent Crude, has experienced a decrease of 5 percent this week. However, Brent Crude this morning climbed $0.98 to value each barrel at $68.74. Due to US sanctions and voluntary supply cuts, a floor under prices held. Market analysts are expecting the oil market to recover off of the price floor.

“It is reasonable to doubt whether Saudi Arabia will be willing to step up its output given the latest decline in prices, […] we therefore expect to see higher oil prices again in the near future,” Explain analysts at Commerzbank.

In order to make the market tighter, the Organization of the Petroleum Exporting Countries has been cutting oil supplies since the beginning of the year. 

Brent Crude’s prices reflect that the supply and demand of oil is tightly knit. According to UBS, Brent Crude should get back to $75 this month as supply gets tighter and tighter.

“Compliance of OPEC and its allies to the production cut deal remains high, while production from Iran and Venezuela is likely to again trend lower this month,” explains analyst Giovanni Staunovo,

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StockPrice.com Friday Morning Update – May 24, 2019

Joe Samuel

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New Systems & AI Trigger Innovation In Security Industry; Can Lockheed Martin Adapt?

Threats to people’s lives are constantly developing across the globe. In order to mitigate the growing fears of international conflict, security and defense companies have continuously innovated. Living in constant fear is never sought and these companies understand that. Security innovations allow people in the US to walk around freely at the park or go watch their favorite artist at a concert with little to no fear.

New Potential for the Security Industry & Security Stocks – Click Here


Two Massive Growth Industries, One Choice for Investors

Two of the fastest growing industries right now in the United States are on-demand technology and cannabis. These two industries are at the epicenter of growth and investors aren’t being shy about their appetite for companies in these arenas. But one company, in particular, has developed a unique business model that services both of these massive growth industries.

Click Here For More Information


The Delivery Market in the Age of Convenience; Can GrubHub & Uber Adapt?

As the internet grows and develops, people and services become more connected. Thus, the food delivery service industry has blown up over recent years. Big players like UberEats (UBER), Postmates, and DoorDash are making big splashes against competitors like GrubHub (GRUB). These companies only represent a fraction of what delivery services can become.

Will This Be The Future For Delivery Stocks As We Know It? Click Here

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New Systems & AI Trigger Innovation In Security Industry; Can Lockheed Martin Adapt?

Joe Samuel

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Threats to people’s lives are constantly developing across the globe. In order to mitigate the growing fears of international conflict, security and defense companies have continuously innovated.

Living in constant fear is never sought and these companies understand that. Security innovations allow people in the US to walk around freely at the park or go watch their favorite artist at a concert with little to no fear.

New Potential for the Security Industry & Security Stocks

While developing security protocols and machines to fight threats overseas is important, home-grown threats have become a point of concern for US citizens. Mass shootings have increased, and the Muslim radicalization of American citizens is prevalent as ever. In order to make people safer, Liberty Defense has come to fill that hole.

Liberty Defense Holdings Ltd. (SCAN.V) is developing HEXWAVE to revolutionize how facilities get secured. HEXWAVE can be used to detect any kind of weapon through 3D imaging. The technology utilizes both quickness and indiscretion to produce warnings of potential threats while respecting people’s privacy. 

While the product is still undergoing testing, Liberty Defense Holdings Ltd. (SCAN.V) has been taking steps to put HEXWAVE in front of the public. The company recently announced signing a memorandum of understanding with Utah’s Attorney General to beta test HEXWAVE there. The technology can be tested at sporting events, amusement parks, schools, and government buildings.

Bill Riker, Liberty Defense’s CEO, stated, “HEXWAVE can be applied in a variety of settings to provide a means to identify possible threats before they advance into attacks. We are excited that the Attorney General of Utah recognizes the potential value of this technology and the opportunity it provides for enhanced security in the state.”

What’s Should Be Expected Of Defense Companies?

When people think about the US armed forces they marvel at the gear used from tanks to jet planes. Most people do not take the moment to think where the US actually gets its arms from.

Report: This New Technology Could Transform A Multi-Billion-Dollar Industry!

One company responsible for US defenses is Lockheed Martin (LMT). Lockheed Martin develops and manufactures missile systems, aircraft, and training systems. They even provide cybersecurity services to governmental figures.

While Lockheed Martin controls a large portion of the defense industry, they show no signs of slowing down. Recently, the company made progress on its new production facility in Alabama. It is expected to be a 225,000 square foot facility to fulfill US Air Force needs.

The construction is expected to be finished in 2021. Executive Vice President, Frank St. John, explained, “All our employees come to work with an unwavering commitment to help our customers succeed in their mission to create a more secure and prosperous world.”


security defense stock
Disclaimer: Pursuant to an agreement between MIDAM VENTURES, LLC and Liberty Defense Holdings Inc. Midam was hired for a period from 04/15/2018 – 5/15/2019 to publicly disseminate information about Liberty Defense Holdings Inc. including on the Website and other media including Facebook and Twitter now extended through June 21, 2019. We were paid $350,000 (CASH) for & were paid “0” shares of restricted common shares. We may buy or sell additional shares of Liberty Defense Holdings Inc. in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information. FULL DISCLAIMER HERE




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