The Walldorf software company SAP AG brought the day before the proposed acquisition of e-commerce specialist hybris successful conclusion. SAP announced in early June announced its intention to acquire the Swiss software company.
SAP has paid how
much for the Swiss company, was initially unclear. However, industry sources
speak of a purchase price of 1.0 to 1.5 billion U.S. dollars. SAP Co-CEO Bill
McDermott said in a recent conference call of "fair price", the SAP
had paid for the company in the face of growth assets.
SAP sees
opportunities in e-commerce technology
The Swiss hybris
is considered very promising. The company offers an e-commerce platform that is
capable of running both on-premise and in cloud environments. In addition, the
hybris software suite is fit for use both on the web and on mobile devices.
Through integration with its in-memory platform Hana, analysis and cloud
applications and social software platform SAP Jam, SAP hopes to add real value
for its customers and existing hybris clients to create.
Hybris already
serving companies such as 3M, Nikon, Bridgestone, Proctor & Gamble and
Thomson Reuters. The developed software enables companies of hybris information
about customers, products and orders on many channels to view. De facto allows
hybris a holographic view of the customer, which company should be helped to
sell more products and services to customers.
The acquisition
of SAP (WKN: 716460) is regarded as the answer Walldorf to the planned
acquisition of Exact Target through Salesforce.com. The reason e-commerce
technologies are increasingly important. The market volume in this area is
already estimated at 37 billion dollars and is growing more than twice as fast
as the entire retail industry.
SAP wants to
maintain investment plans in China
Another
construction is currently the Asia business at
SAP. The software and cloud computing sales declined in the second quarter to
seven percent over the previous year.
Precisely for
this reason, SAP plans to invest further. The goal is to rise in the coming
years among the top 5 companies in China. Chief Financial Officer
Werner Brandt cancels against the Euro on Sunday, plans to invest 2.0 billion
euros in China
over the next few years until 2015. In 2015, SAP plans to implement a billion
dollars in China.
Brandt then also
confirmed problems in China,
which is facing the German software house of a difficult to predict demand.
There were also internal problems recently, after the forma-celled head of
China Business Hera Siu indulged a break. Recently, we have not found a
replacement, the new head of the business in China would resume Shortest already
in his work, Brandt announced.
Short Profile
The in 1972
launched and based in Walldorf software company SAP AG increased, especially in
the 80s and 90s, the world's leading provider of ERP software (Enterprise
Resource Planning) on.
This enterprise
software company allows customers important data in relation to business processes,
such as production, accounting, human resources and sales within a company to
keep in mind and to optimize business processes. Already put more than 30,000
companies in more than 120 countries worldwide on software from SAP.
With the advent
of the Internet, SAP expanded its product range accordingly and offers its
Internet portal mySAP.com with the complex software suite mySAP Business Suite
to both solutions for electronic procurement systems (supply chain management)
and customer relationship management (CRM).
With NetWeaver,
SAP wants to open new business opportunities and market integration in the
market for application server. With the project "Business By Design",
SAP intends to strengthen the middle class and in the market for cloud-based
offerings. With the in-memory database, HANA SAP plans to analyzing large
volumes of data in seconds allow...
In order to
effectively edit the individual markets such as IT services and e-procurement
systems, founded in 1997, the SAP subsidiary SAP SI. SAP SI was later re-integrated
back into the group. In recent years, SAP reinforced through a series of
acquisitions. In the spring of 2006, SAP took over the software vendor Virsa
Systems, and the software specialists Frictionless Commerce. Mid-2006, the
software specialist practice was acquired software. In the spring of 2007, the
Company purchased the Norwegian software company and the Finnish MaXware Wizcom
Communications. In the area of Business Intelligence, SAP reinforced by the
acquisition of Pilot Software and Soft Outlook. After the takeover of its
partner SAP Arabia, SAP swallowed in the fall
of 2007 the French analysis software manufacturer Business Objects. In spring
2010, the Company bought the U.S.
software specialist Sybase. Previously, the Company had already swallowed the
longstanding partner TechniData. In autumn 2010, then founded the SAP Mobile
Business Unit. Early 2011 were taken from SECUDE assets. The end of 2011, SAP
took over the cloud specialists Success Factors, at the same time Steeb was
repelled. In autumn 2012, the Company bought the U.S. software company Ariba.
Mid-2013, the Company bought the logistics management specialist hybris.
In the area of electronic
procurement systems founded SAP together with Siemens, Bosch, INA, Continental
AG and ZF Friedrichshafen AG SupplyOn the joint venture. Numbers
For the previous
second quarter of 2013, SAP had in the year-ago quarter at constant currency by
eight percent to 4.06 billion euros. The operating profit (EBIT) rose by ten
percent growth to 988 million euros, so after tax stood at a five percent Risen
on 724 million Euro profit in the books. The operating margin improved 0.6
percentage points to 24.3 percent. Each share in the second quarter accounted
for a profit of 0.61 euros (0.55 euros).
In the software,
the software company SAP suffered a decline of three percent to 982 million
euros in the second quarter of the current fiscal year. Business with Cloud
subscriptions and support exploded as expected with a growth rate of 171
percent to 159 million euros. The Software segment and cloud subscription could
show sales growth of seven percent, reaching a value of 1.14 billion euros.
The Hana
software sales, an important engine of growth for SAP, increased 21 percent
year over year in the quarter, down from 102 million euros.
Market and
Competition
SAP is the
global ERP market with a market share of over 25 percent (source: Gartner) as
the dominant provider. Despite the adoption of J.D. Edwards and PeopleSoft,
Oracle takes in this area only in second place. Other rivals in the ERP segment
consist primarily of the software provider NetSuite, which specializes in
on-demand solutions.
Elsewhere SAP
competes with Oracle's solutions. This is especially true in the area of CRM
software after Oracle CRM specialist Siebel Systems took over. SAP has recently
displaced Oracle CRM segment from the top position. However, SAP sees itself
through the U.S.
specialist Salesforce.com afflicted, who claims to have taken over the top spot
in 2011.
In the area of business
intelligence software, SAP acquired Business Objects is consistent with its in
direct competition with IBM (Cognos) and Oracle (Hyperion) and with other
smaller competitors such as Micro Strategy.
With its new
medium-sized and rental software "Business By Design" the company
wants to gain a stronger foothold in the market for small and medium-sized
customers. In HCM SAP is increasingly competing with Workday.
Outlook
SAP continues to
expect full-year 2013 Hana a turnover of 650 million to 700 million euros.
Instead of a growth of 11 percent to 13 percent, as previously anticipated, the
Company expects in 2013, a growth of only ten percent.
Analysts expect
at SAP in 2013 with a net profit of 3.38 euros per share, which is planned to
increase in the following year 2014 to 3.79 Euros per share. In 2015, expected
a profit of 4.26 euros per share.
Review
SAP shares
recently presented in New York
at 74.08 U.S. dollars friendly, so this results in a market value of around 88
billion U.S. dollars for SAP shares. In Frankfurt SAP papers were last traded
at 56 euros. Based on current earnings estimates for the year 2014, a
price-earnings ratio (PER) of 22 results
Analysts at
Evercore Partners recently reduced their price target on shares of SAP 77 to 75
euros; said analysts currently classify the papers with "equal
weight".
Analysts at
Barclays Capital Rate SAP shares to "equal weight", the analysts see
a price target of 55 euros for the papers.
The experts at
DZ Bank see the fair value of SAP shares at only 63 Euros, at the same time
confirmed the bankers their buy recommendation on the paper.
At Citigroup to
"neutral" is SAP shares continue to face. The analysts continue to
see a price target of 58 euros for the papers. The analysts see a danger that
it might take longer for the in-memory database will be a growth in the Group.
