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Enterprise software giant SAP is acquiring<\/a> \u201cdigital adoption\u201d platform provider WalkMe<\/a> in an all-cash transaction worth $1.5 billion. <\/p>\n WalkMe\u2019s Nasdaq closing price yesterday was $9.64, with SAP\u2019s $14 offer representing a premium of 45%.<\/p>\n Founded out of Israel in 2011, WalkMe was initially designed to simplify website navigation by providing real-time, contextual on-screen guidance. The company added more features to the platform through the years, and became increasingly used in both consumer and enterprise applications, for instance to guide users through new features or to on-board new employees. This might include little balloon overlays, or even on-screen prompts to try and convert free users into paying customers. It\u2019s all about automating a process that would otherwise be a resource-intensive endeavor with human help alone.<\/p>\n As part of its enterprise push, WalkMe also provides insights into end-user behavior, with a focus on providing extra support tools or information at points where a user is more likely to exit an application.<\/p>\n WalkMe had raised<\/a> around $300 million ahead of 2021 IPO<\/a>, but like many companies during the pandemic period, its valuation has plummeted in the intervening years, going from a peak of $2.8 billion in September 2021 to a little more than $600 million within a year \u2014 substantially below it last-known private valuation of around $2 billion<\/a>. The company\u2019s valuation has hovered at around the $800-$900 million mark this year.<\/p>\n Notably, the deal is designed to complement two other acquisitions SAP has made in the past few years \u2014 it acquired fellow German firm Signavio, a business process automation company, for $1.2 billion in 2021<\/a>. And late last year, SAP procured another German company<\/a> called LeanIX, which specializes in enterprise architecture management \u2014 basically helping companies modernize more quickly.<\/p>\n WalkMe fits into that pattern, insofar as it\u2019s all about helping companies transform for the modern software era. <\/p>\n \u201cApplications, processes, data, and people are the four key elements of a successful business transformation,\u201d SAP CEO Christian Klein noted<\/a> in a press release. \u201cBy acquiring WalkMe, we are doubling down on the support we provide our end users, helping them to quickly adopt new solutions and features to get the maximum value out of their IT investments.\u201d<\/p>\n<\/div>\n