Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
💎 Reveal Undervalued Stocks Hiding in Any Market Get Started
Qualtrics adds to gains as Silver Lake plans bid, analysts see $20 takeover value
© Reuters. Qualtrics (XM) adds to gains as Silver Lake plans bid, analyst sees $20 takeover value
By Investing.com Staff
Qualtrics International (NASDAQ:XM) added to strong gains in made January after 15% shareholder Silver Lake disclosed Wednesday morning that it plans to bid for the company. News of the potential private equity bid comes days after controlling shareholder, SAP (ETR:SAPG), announced it has decided to explore a sale of its stake in Qualtrics.
SAP acquired Qualtrics and has increased revenue by 3.5x to ~ $1.5 billion since the acquisition.
"In line with SAP’s strategic initiative to streamline its portfolio, SAP has decided to explore a sale of its stake in Qualtrics," SAP said in a statement at that time. "This would be a continuation of the strategy we set at the time of the Qualtrics IPO in 2021. SAP believes that this potential transaction could unlock significant value for both companies and their shareholders: for SAP, to focus more on its core cloud growth and profitability; for Qualtrics, to extend its leadership in the XM category that it pioneered."
In a 13D filing this morning, Silver Lake said it "currently intends to submit a proposal," which it said, "could also lead to one or more subsequent revised or different proposals."
Silver Lake said the proposal could result in it "acquiring all or substantially all of the outstanding capital stock", which would "result in a de-listing and de-registration of the Class A Common Stock."
Following the news, Evercore ISI analysts raised their price target on XM to $20, saying they expect the potential private equity bid to drive the near-term performance of the stock. They expect XM to "ultimately be valued in line with other recent P/E acquisitions or roughly ~7-8x NTM sales."
The analysts also think Qualtrics founder Ryan Smith "could join up with any bidding consortium and help assure a smooth transition." In addition to a full buyout, "there is also the possibility of leaving the public company intact and simply transferring SAP’s ownership to a financial buyer," the analysts added.
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.