Confirming the latest news, Qualtrics International Inc. today announced that it agreed to acquire Silver Lake and CPP Investments for $12.5 billion.
The all-cash deal values Qualtrics at $18.15 per share. That’s 73% higher than the company’s last unchanged closing price. The deal will be financed with equity from Silver Lake and CPP Investments, as well as $1 billion in debt.
Silver Lake is a private equity firm focused on the technology industry. CPP Investments, also known as the Canada Pension Plan Investment Board, is Canada’s largest pension fund. CPP Investments and Silver Lake are rumored to be buying Qualtrics appeared for the first time last week.
Nasdaq-listed Qualtrics sells software that businesses use to collect employee and customer feedback. The company has more than 18,000 customers worldwide, including more than 90% of the Fortune 100.
Human resources teams use Qualtrics software to conduct employee surveys. A company might, for example, use the software to survey employees about the effectiveness of a new employee training program. Qualtrics also provides automation features that make it easy to analyze collected feedback.
For product teams, Qualtrics offers a version of its platform that can collect data from current and potential customers. A software manufacturer can use the platform to gauge customer response to a new product idea before building a prototype. Qualtrics also enables companies to collect user feedback on existing products.
Along with its core feedback collection features, Qualtrics offers tools to help companies use the data they collect. One such tool, Predict iQ, can analyze customer survey data to identify when a company’s users are at risk of leaving. For marketing departments, Qualtrics enables you to test different ad options and determine which option resonates most with users.
“Qualtrics is becoming central to how businesses make mission-critical decisions from customers and employees that drive revenue and operational efficiency,” said Zig Serafin (pictured), Chief Executive Officer of Qualtrics. “With our AI-powered platform and automated operations, we help companies deliver exceptional experiences and build deep relationships with their customers and employees at scale.”
Silver Lake and CPP Investments are buying Qualtrics after four years of rapid growth. Qualtrics was acquired by SAP SE for $8 billion in early 2019. Since then, the company has more than tripled its revenue and grown its customer base from 10,000 organizations to nearly 18,000.
Along the way, SAP listed Qualtrics stock on the Nasdaq in a 2020 public offering. The enterprise software giant remains Qualtrics’ largest shareholder with a 71% stake. SAP this morning is indicated that it will approve the buyout offer from Silver Lake and CPP Investments.
“Silver Lake has both the operational expertise and experience with software companies to help Qualtrics expand its leadership in the XM category it has created,” said Christian Klein, SAP chief executive officer. “Since we acquired Qualtrics in 2019, the company has more than tripled its revenue while delivering profitability.”
Qualtrics’ sales rose 23% to $389.1 million from the previous quarter. It also posted adjusted net income of $16 million. The company is forecasting revenue of about $1.66 billion for the current fiscal year.
Silver Lake and CPP Investments expect to close the acquisition in the second half of 2023. After the deal closes, Qualtrics Chief Executive Officer Zig Serafin will continue to lead the company. Qualtrics also said it will continue to work with former parent company SAP on joint engineering and go-to-market initiatives.