SAP files for Qualtrics IPO expected to value the software company at more than the acquisition price

SAP files for Qualtrics IPO expected to value the software company at more than the acquisition price

Two years after SAP SE swooped in and gobbled up Qualtrics International Inc. for $8 billion mere days before its planned initial public offering, the software company expects to go public after all.


intends to take Qualtrics public next year while remaining a majority owner, according to a filing on Monday. Qualtrics, a unit of SAP, plans to lists its stock on the Nasdaq under the ticker “XM” with an offering price between $20 and $24 per share. The “XM” refers to experience management, a category of software Qualtrics takes credit for popularizing. Morgan Stanley and JP Morgan are leading the offering.

At the listed price, Qualtrics would be valued at more than $10 billion, and likely well higher than that figure. The filing with the Securities and Exchange Commission did not list a targeted share count for the IPO, which would give a complete valuation, but the already created shares would be worth more than $10 billion at the $24 price.

The company could hit public markets in late January or early February.

According to the filing, Qualtrics racked up revenue of $401.9 million and $591.2 million for the years ended Dec. 31, 2018 and 2019, respectively, representing year-over-year growth of 47%.

The Provo, Utah-based company recorded an operating loss of $244.1 million for the first nine months of the year, but $218 million of that was because of stock-based compensation. As of Sept. 30, Qualtrics XM Platform was used by more than 12,000 customers, including 85% of the Fortune 100, the filing said.

Qualtrics co-founder Ryan Smith, who recently acquired the NBA’s Utah Jazz for $1.66 billion, is expected to be Qualtrics’ largest individual shareholder with 6 million shares.

Egon Durban, co-CEO of private equity firm Silver Lake, and Zoom Video Communications Inc.

Chief Financial Officer Kelly Steckelberg are joining the board of Qualtrics.

When SAP completed its acquisition of Qualtrics in early 2019, it was the largest private enterprise software acquisition in tech history. Today, Qualtrics is a major mover in a $60 billion annual addressable market annually.

During SAP’s two-year ownership, Qualtrics maintained the same management.

Qualtrics joins a strong 2021 IPO class that will include gaming company Roblox Inc.

and lending company Affirm Holdings Inc.
Airbnb Inc.

and DoorDash Inc.

both went public in December.

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