German software giant SAP is selling its corporate learning software business Litmos for $1 billion, report | tech news

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According to an exclusive report by Reuters citing three sources, German software giant SAP is reportedly working with investment bank Moelis & Co to streamline its operations and focus on cloud-based revenue to expand its corporate learning software business, Litmos sell familiar with the ongoing talks.

The sources, who asked not to be identified because the matter is private, told Reuters that the sale of Litmos could be worth more than $1 billion.

Reuters also noted that investment bank Moelis & Co is expected to start an auction process in the coming weeks, targeting primarily tech-focused private equity funds in the United States and Europe, two of the sources told Reuters. SAP and Moelis spokesmen declined to comment on the story.

Founded in 2007, California-based Litmos offers a Learning Management System (LMS), SAP Litmos Training – and a comprehensive course library – SAP Litmos Training Content. Thousands of companies use Litmos to centralize and deliver transformative training for employees, customers, and partners.

Litmos was acquired by CallidusCloud in 2011 and by SAP in 2018 for $2.4 billion before later being rebranded as part of the SAP Litmos platform. Litmos provides business customers with learning platforms to develop sales and customer service and is used by more than 30 million people in 150 countries in 35 languages, according to its website.

Apparently, SAP decided to sell Litmos due to overlap with SAP SuccessFactors, a learning platform in SAP’s promoted Human Experience Management Suite. The decision to sell Litmos also aligns with Luka Mucic, SAP’s Chief Finance Officer, during a recent phone call. At the time, Mucic told reporters that “SAP intends to streamline its operations — including divestitures — to focus on growth drivers.”

The sources added that while both are cloud-based solutions, Litmos is compatible with a variety of HR systems such as ADP and BambooHR, while SAP SuccessFactors focuses on training users to use its own platform .

This isn’t the first time SAP has worked with Moelis. In 2020, Moelis helped SAP when the software giant sold Digital Interconnect (SDI) to Swedish cloud communications company Sinch for around $250 million.



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