SAP adjusts dividend policy and acquires WalkMe

6/6/2024, 12:17 PM

SAP increases dividend base: At least 40 percent of the non-IFRS after-tax profit will be distributed in the future.

Eulerpool News Jun 6, 2024, 12:17 PM

The DAX company SAP has announced a change in its dividend policy. In the future, at least 40 percent of the non-IFRS after-tax profit from continuing operations will be distributed to shareholders. Previously, this ratio applied to the IFRS after-tax profit. This adjustment aims to reduce the volatility in the dividend payout ratio and ensure close alignment between the payout ratio and financial performance.

Parallel to this, SAP strengthens itself through another acquisition. The company is acquiring the Israeli provider of Digital Adoption Platforms (DAP), WalkMe, for $14.00 per share in cash. This represents a 45 percent premium on the previous day's closing price and a company valuation of $1.5 billion. WalkMe offers advanced guidance and automation features for users and will complement SAP's portfolio in the area of Business Transformation Management, which also includes Signavio and LeanIX, acquired in 2021 and 2023, respectively.

SAP CEO Christian Klein emphasized the importance of the acquisition: "With the acquisition of WalkMe, we are significantly enhancing support for our end users and helping them to quickly adopt new solutions and features.

The transaction is expected to be completed in the third quarter. According to SAP, the impact on the non-IFRS earnings per share in 2024 is expected to be negligible.

On the stock exchange, the share prices of both companies reacted positively. The SAP share recently gained 1.73 percent in XETRA trading and closed at 171.52 euros. The WalkMe share rose by 42.79 percent on NASDAQ to 13.77 US dollars.

Discover undervalued stocks with Eulerpool.

Subscribe for $2

News

Trump's Stakes in Chip Companies: Opportunism Instead of Strategic Industrial Policy

Trump's state involvement in Intel does not mark a strategic shift but rather sets dangerous precedents for opportunistic industrial policy.

Japanese medtech group Terumo acquires OrganOx for 1.5 billion dollars

Terumo acquires Oxford spinout OrganOx for $1.5 billion, accelerates global expansion of innovative transplantation technology, and strengthens research.

Wall Street warns of stablecoin legislation: Billions in outflows threaten bank deposits

U.S. banks warn of a stablecoin law that could trigger trillion-dollar deposit outflows and higher credit costs due to the interest advantages of crypto exchanges.

Nvidia Result in Focus: Wall Street Bets on AI as the Next Price Driver Following Powell Signal

Nvidia's quarterly figures are expected to show whether AI euphoria continues to drive gains or if the market and valuations start to falter.

Silicon Valley gears up politically: Andreessen Horowitz and OpenAI president fund new AI Super PAC

With over 100 million dollars, Silicon Valley is forming a political network to fend off strict AI regulation in the USA.