Qualtrics has $12B offer on the table to go private

Qualtrics was once a hot startup before SAP bought the company in 2018 for $8 billion. It was a fine exit, making the founders rich, but it never was really a good fit. SAP spun out the company just two years later, before taking it public in 2021.

On Sunday, the company filed an 8-K form with the SEC indicating it has an offer to go private again in a $12.4 billion deal with Silver Lake and the Canadian Pension fund that values the company stock at $18.15 per share.

“Our exclusivity agreement with Silver Lake is a next step in the process announced by SAP on January 26th. As the process continues to play out, we’re committed to achieving the best outcome for our company and our shareholders, as we maintain our focus on delivering for our customers around the world,” the company said in a statement.

Translated, that means the principle stockholder SAP began looking for buyers in January, and this is the best offer it received. It will probably continue to look for a better one, but if it doesn't come along, it will surely take this one.

It's certainly been a long, strange trip for the company. This time, SAP, which owns 71% of the company, would recoup its initial investment, but not much more (although it did probably gain some additional money when the company went public).

Anand Thaker, a martech consultant who keeps close watch on the companies, says it's a reasonable deal for both parties. "SAP needs cash and this seems like an excellent opportunity for them to return those funds to the coffers. Silver Lake is likely to come out healthy of funds from the pending VMware deal [with Broadcom]," he said. That deal is still subject to regulatory approval.