SAP Thinks Salesforce Is Too Expensive For Acquisition

The head of German software maker SAP has again said that his firm won’t be making a move to acquire rival Salesforce, and that it is unlikely it will be acquired at all.

This is according to Reuters, which spoke to SAP CEO Bill McDermott ahead of its annual shareholder meeting today.


McDermott was asked how a Salesforce acquisition would affect SAP, to which he replied: “I do not expect that to be the case because of the valuation of the company (Salesforce).”

McDermott then said that he didn’t think any companies in the industry would buy Salesforce.

Earlier this month, Microsoft was tipped to be the front runner in any Salesforce acquisition, but sources inside the company quickly dismissed the claims.

Salesforce is currently valued at $46bn (£30bn), a price Microsoft considered that current market valuation too expensive.

Rumours of a Salesforce acquisition started last month, when it was revealed the CRM giant was working with financial advisors. Whatever happens, the move will see the cloud CRM market get a good shaking.

McDermott also told Reuters that Oracle would be the best-suited buyer in relation to the impact on SAP. He said: “It is probably better than any (other) scenario for SAP because it will add more disruption to a commodity business.”

Salesforce will today release its first quarter results after close of trading in the US.

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Ben Sullivan

Ben covers web and technology giants such as Google, Amazon, and Microsoft and their impact on the cloud computing industry, whilst also writing about data centre players and their increasing importance in Europe. He also covers future technologies such as drones, aerospace, science, and the effect of technology on the environment.

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