SAP Spin-off (Qualtrics IPO) Notes

January 28, 2021  Update

  • Qualtrics International (XM) priced its IPO at $30 per shares but the stock short up and closed at $44.80.
  • With 510.2MM shares outstanding, the company has a $23BN market cap, a 31x revenue multiple.
  • SAP still owns the majority of the company and has 98% voting rights.

August 14, 2020 Update

  • SAP SE (SAP) announced that it intends to take Qualtrics public through an IPO. Qualtrics is the market leader and creator of the Experience Management (XM) software category, a large, fast-growing and rapidly evolving market.
  • SAP intends to remain the majority owner of Qualtrics.
  • In January 2019, SAP purchased Qualtrics for $8 billion. Bloomberg intelligence believes the company could be valued as high as $18.7 billion in an IPO. Spin-off through IPO transactions tend to be less attractive as they are closely followed.
  • Nonetheless, we will follow this transaction in case there is an opportunity.