SAP’s Big Expensive AcquisitionsBy Francine • Oct 17th, 2012 • Category: Pure Content, The Big 4 And Consulting
Enterprise software industry analyst and lovable curmudgeon Dennis Howlett wrote an interesting column earlier this month over at ZDNet recently and quoted me extensively.
SEC filings show that SuccessFactors had internal control problems. How might this impact SAP results going forward?
SuccessFactors is a leader in cloud-based enterprise software for human resources activities. SAP paid $3.4 billion dollars for a company with about $300 million in annual revenues and that, in ten years of existence, had never made a profit. The premium over book value paid by SAP, $2.1 billion, has been recorded as goodwill, an intangible asset.
In May SAP also paid a big premium, 20%, to acquire Ariba for $4.5 billion, a software package I worked with extensively at BearingPoint in Latin America.
That’s a lot of goodwill on the books.
SAP’s auditor is KPMG.