By Emma-Victoria Farr and Krystal Hu
LONDON (Reuters) – German software program agency SAP is working with funding financial institution Moelis (NYSE:) & Co to promote its company studying software program enterprise Litmos because it seeks to streamline its operations and give attention to cloud-based income, three sources informed Reuters. The sale of California-based Litmos, which is worthwhile, might fetch a valuation of greater than $1 billion, stated the sources, who requested anonymity as a result of the matter is personal.
Moelis is anticipated to begin an public sale course of within the coming weeks and can primarily goal tech-focused personal fairness funds in the USA and Europe, two of the sources stated. Representatives at SAP and Moelis declined to remark.
SAP purchased Litmos as a part of its acquisition of U.S. cloud software program agency Callidus for $2.four billion in 2018, rebranding the platform SAP Litmos.
The enterprise offers studying platforms to company shoppers to develop gross sales and customer support, and is utilized by greater than 30 million individuals in 150 international locations, in response to its web site.
The sources stated Litmos overlaps with SAP SuccessFactors, a studying platform within the human expertise administration suite SAP promotes. Whereas each are cloud-based options, Litmos is suitable with a wide range of HR programs resembling ADP and BambooHR, whereas SAP SuccessFactors is concentrated on coaching customers to make use of its personal platform.
SAP’s Chief Finance Officer Luka Mucic informed reporters on a current name that SAP needs to streamline its operations – together with divestments – with the intention to give attention to development drivers.
Moelis helped SAP with a earlier disposal in 2020 when the German software program big bought Digital Interconnect (SDI) to Swedish cloud communications agency Sinch for about $250 million.
SAP listed its expertise administration software program enterprise Qualtrics in the USA final yr, remaining its majority proprietor.
CEO Christian Klein is reviewing SAP’s portfolio with the intention of shifting in direction of subscription-driven companies and growing cloud-based income.