SAP to acquire Emarsys in an aggressive move

The News

On October 1st, 2020 SAP announced its intent to acquire Emarsys, a leader in the personalization area and omnichannel customer engagement management specialist. The transaction is expected to be completed in Q2/2020 and still subject to regulatory approval. The purchasing price is not disclosed. According to Crunchbase, Emarsys was funded with $55.3M US by Vector Capital in two funding rounds 2015 and 2016. Not being a financial analyst, I would expect a purchasing price of north of $ 500M US.

The bigger Picture

The ability to segment in real time becomes more and more important, especially with increasing e-commerce and what I would dub commerce anywhere. It is key to be able to serve the right information, regardless of the communications channel, in milliseconds rather than seconds, using a database of millions of customers. The increasing trend towards headless commerce solutions as well as commerce functionalities built into store apps and messenger style or social media apps are a good indication of what is required.

My Analysis and Point of View

This acquisition came as a kind of a surprise for me as I did (and do) not see much of a chance for SAP to become one of the top two players in the marketing segment. My glass ball must have been slightly fogged up. Based upon this, the game plan that Bob Stutz has in mind, must be different.

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