SAP Announces Acquisition of WalkMe to Enhance Digital Adoption Efforts
Today, SAP revealed a definitive agreement to acquire WalkMe, an Israeli multinational known for its digital adoption platform (DAP).
Under the terms of the all-cash deal, SAP will pay $1.5 billion, or $14 per share, representing a 45% premium over WalkMe's June 4 closing price of $9.64. This acquisition aims to strengthen SAP's Business Transformation Management suite, facilitating faster adoption of digital solutions and boosting customer productivity and ROI.
“Applications, processes, data, and people are the four key elements of a successful business transformation. By acquiring WalkMe, we are enhancing our support for end users, helping them adopt new solutions swiftly and maximize their IT investments,” said Christian Klein, CEO of SAP, in a press release.
This marks SAP's third significant acquisition to drive business transformation, following previous purchases of Signavio and LeanIX.
What WalkMe Brings to SAP
Founded in 2011, WalkMe initially provided on-screen guidance for website navigation. Over the years, the company evolved into a comprehensive DAP, offering personalized user guidance, workflow automation, and AI-driven insights to help enterprises manage continuous technological change.
WalkMe's platform integrates seamlessly with an organization’s existing tech stack, providing personalized guidance and automations to enhance user experiences. It addresses challenges such as app navigation and sign-up errors, all while operating within users' workflows. Meanwhile, administrators gain AI insights into user interactions, enabling more effective workflow automations and guidance to accelerate digital transformation and optimize software investments. Recently, WalkMe introduced WalkMeX, an always-on copilot that recommends next steps based on contextual data.
While WalkMe has long collaborated with SAP—its DAP has powered SAP SuccessFactors HCM workflows—the acquisition will enhance SAP’s Business Transformation Management portfolio. This will further support organizations in navigating their digital transformation journeys.
In past efforts, SAP acquired Signavio, a business process automation platform, and LeanIX, which visualizes software architecture to identify potentially obsolete applications. WalkMe is poised to complement these initiatives.
Moreover, WalkMe's technology will extend to other SAP applications, including the S/4 HANA ERP suite. Dan Adika, CEO of WalkMe, even demonstrated how the platform can provide user nudges for tasks like creating an invoice. The WalkMeX copilot will also integrate with SAP’s Joule AI assistant.
The acquisition is subject to standard closing conditions, including approval from WalkMe’s shareholders, and is anticipated to finalize by the third quarter of 2024.