German software giant SAP acquired Israeli company WalkMe for $1.5 billion, three years after WalkMe went public on Nasdaq with a $2.5 billion valuation. This acquisition marks SAP's 12th purchase in Israel.
SAP will pay $14 per share, a 45% premium to WalkMe's current valuation of less than $880 million. Despite the substantial exit, WalkMe investors face a 40% negative return, as SAP's cash purchase excludes any exposure to SAP stocks.
Founded in 2011 by Rafael Sweary and Dan Adika, WalkMe developed a platform to assist organizations in adopting digital technologies. The company has previously collaborated with SAP, integrating its product into the German firm's solutions.
WalkMe will be integrated into SAP's development center in Israel, which employs 900 people.