SAP agrees to buy working capital finance company Taulia


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SAP

announced an agreement to acquire a majority stake in Taulia, a San Francisco-based provider of working capital management software and services.

According to Crunchbase, Taulia has raised nearly $217 million in venture capital from a group that includes JP Morgan, Saudi Aramco, Zouk Capital, Matrix Partners and others. SAP said JP Morgan would remain a minority investor in Taulia after the deal closes, as would Taulia CEO Cedric Bru. Taulia and JP Morgan had announced a strategic alliance in April 2020 to provide trade finance services to the bank’s clients.

Terms of the agreement were not disclosed. In an interview with BarronsSAP chief financial officer Luka Mucic said the deal was worth less than $1 billion, but declined to elaborate.

Taulia will retain its brand and operate as an independent company as a unit of the German enterprise software company. SAP (symbol: SAP) said it would invite other financial institutions to manage customer working capital on the platform, and could potentially add other strategic banking partners as investors, SAP remaining the majority owner.

SAP said Taulia “offers prepayment through supply chain financing, dynamic discounting and accounts receivable financing.”

Mucic said Taulia provides working capital financing from JP Morgan, Unicredit and other funding sources, helping connect more than 100 business buyers to a network of millions of suppliers. He noted that 85% of Taulia’s enterprise customers are already SAP customers and that Taulia’s financial network is fully integrated with SAP’s flagship S/4 Hana enterprise resource planning software.

Meanwhile, SAP’s majority stake


Qualtrics

(XM) Wednesday night reported better-than-expected fourth-quarter results. SAP spun off the company in a public offering in January 2021. For the quarter, Qualtrics reported revenue of $316 million, up 48% from a year ago, and ahead of the Wall Street consensus at $297.6 million. The company posted an adjusted loss in the quarter of 7 cents per share, better than the consensus forecast for a loss of 2 cents.

Qualtrics said it forecast revenue in the first quarter ending March of $324 million to $326 million, ahead of the Wall Street consensus of $314.7 million. For the full year, Qualtrics is forecasting revenue of $1.402 billion to $1.406 billion, ahead of consensus at $1.36 billion. Shares of Qualtrics jumped 10.5% in premarket trading Thursday to $26.80.

SAP’s Mucic said Qualtrics had “tremendous performance” in 2021, with accelerated growth. He noted that SAP, which owns about 74% of the company’s shares, or 64% on a fully diluted basis, has no intention of selling any of its positions. Mucic said Qualtrics’ current stock price is “a far cry from accurately reflecting the value of the company.”

SAP also released its fourth-quarter financial results on Thursday morning, matching the company’s recent pre-announcement of results. U.S.-listed shares of SAP fell 7.3% to $122.67 in premarket trading on Thursday.

Write to Eric J. Savitz at eric.savitz@barrons.com

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