Arik Hesseldahl

Recent Posts by Arik Hesseldahl

SAP Vaults Into Top Three E-Commerce Players With Hybris Buy

acquisitions_sharkGerman software giant SAP said it will acquire Hybris, a privately held e-commerce software company based in Switzerland.

Financial terms weren’t disclosed, but educated guesses put the value of the deal at between $1.2 billion and $1.5 billion. Hybris is known primarily for competing with IBM’s WebSphere Commerce Suite and Oracle’s Commerce Suite. And it’s also worth noting that the deal is taking place a week after Netsuite, the cloud business software player, said it was getting into the “commerce as a service” business and announced a big customer win with Williams Sonoma.

Analyst Karl Keirstead of BMO Capital Markets, in a note sent to clients earlier today, said he was positive on the acquisition. “Demand for new commerce platforms appears to be robust and the space is attracting new entrants,” he wrote. SAP, he said, had previously struggled to get any traction in e-commerce, and the acquisition essentially puts it among the top three players, along with Oracle and IBM. Also, most of Hybris’ clients are in Europe.

Keirstead raised his revenue estimate for SAP to 17.5 billion euros (about $23 billion) for 2013 and left his EPS estimate at 3.48 euros, or $4.56 a share.

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I think the NSA has a job to do and we need the NSA. But as (physicist) Robert Oppenheimer said, “When you see something that is technically sweet, you go ahead and do it and argue about what to do about it only after you’ve had your technical success. That is the way it was with the atomic bomb.”

— Phil Zimmerman, PGP inventor and Silent Circle co-founder, in an interview with Om Malik