The SAP subsidiary Qualtrics went public on the US stock exchange NASDAQ on Thursday. The share price rose more than 50 percent above the issue price within hours. The market value of the data analytics firm at the close of trading was over $ 27 billion.
In the course of the battle with Salesforce, SAP took over Qualtrics in 2019. Qualtrics originally wanted to go public in November 2018. But just four days before the IPO, SAP struck and bought the company for eight billion US dollars. In July last year, SAP then announced that it would go public with Qualtrics.
Proceeds are used to reduce debt
Qualtrics collects data about customers, employees, products and brands. Among other things, website visitors should be recognized more quickly on the basis of this data in order to be able to offer them specific products. Interest in these analyzes is growing. Qualtrics’ number of customers has grown from 9,000 to around 13,000 in the past two years. The company also owes this to SAP, as many SAP customers have also been using Qualtrics’ services since the takeover.
Qualtrics did when it went public 51.7 million shares priced at $ 30 each sold for $ 1.55 billion. According to a statement from the US stock exchange regulator, SAP intends to use the share proceeds to reduce part of its debt totaling 1.76 billion dollars. The share price had risen to over $ 45 by the time the stock market closed, bringing Qualtrics to a market capitalization of $ 27.3 billion.
SAP is in control
Qualtrics was never fully integrated into SAP, but continued to be operated more independently than other subsidiaries. SAP remains the majority shareholder and fully consolidates the subsidiary in its balance sheet even after the IPO.
Qualtrics founder and CEO Ryan Smith remains involved. He has stated that he wants to become the company’s largest private shareholder. Smith has been the majority owner of the Utah Jazz basketball team in the US professional league NBA since October. There he invested 1.66 billion US dollars.