WalkMe (NASDAQ:WKME) skyrocketed in trading after it was announced that the software-as-a-service (SaaS) company will be acquired by SAP SE (NYSE:SAP) for an equity value of around $1.5 billion. This will be an all-cash deal, with SAP paying $14 per share for the transaction. SAP’s offer price represents a 45% premium to WalkMe’s closing share price on June 4.
With this acquisition, SAP aims to enhance its Business Transformation Management portfolio with WalkMe’s solutions and intends to support end users in adopting new technologies. The acquisition is expected to close in the third quarter of this year.
Is SAP a Good Stock?
Analysts remain cautiously optimistic about SAP stock, with a Moderate Buy consensus rating based on five Buys and two Holds. Year-to-date, SAP has increased by more than 15%, and the average SAP price target of $221 implies an upside potential of 18.9% from current levels.
