Monday, 21 January, 2019

SAP to acquire Callidus Software in $2.4bn cloud mega deal

SAP to acquire Callidus Software in $2.4bn cloud mega deal SAP to acquire Callidus Software in $2.4bn cloud mega deal
Nellie Chapman | 30 January, 2018, 20:15

Callidus shares hiked $3.28, or 10%, in Tuesday's first hour of trade, to $35.98, while SAP shares ditched 76 cents to $112.78. BidaskClub upgraded Callidus Software from a "buy" rating to a "strong-buy" rating in a report on Friday, December 15th.

Callidus Software (NASDAQ:CALD) last announced its quarterly earnings results on Thursday, November 2nd. Three research analysts have rated the stock with a hold rating, nine have given a buy rating and one has given a strong buy rating to the company. Current price levels see the company 19.28% off the 20-day simple moving average.

Callidus Software (NASDAQ CALD) opened at $32.70 on Tuesday. Callidus provides configure price quote (CPQ) and sales performance management tools delivered as a cloud service. The company has a market capitalization of $2,196.71, a PE ratio of -90.83 and a beta of 0.85. Callidus Software had a negative net margin of 9.54% and a negative return on equity of 5.67%. It will start being accretive to SAP earnings from fiscal 2019.

"We are in no way looking to be in the M&A business at scale", the SAP CEO said. The per share purchase price of $36 represents an enterprise value of approximately $2.4 billion. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The shares were sold at an average price of $29.25, for a total transaction of $438,750.00. The disclosure for this sale can be found here. Granite Investment Partners Llc sold 129,711 shares as the company's stock rose 3.72% with the market.

Investors sentiment increased to 1.09 in 2017 Q3. Can boosted its position in Callidus Software by 49.5% during the third quarter. Accern also gave media headlines about the technology company an impact score of 45.4823041279582 out of 100, indicating that recent press coverage is somewhat unlikely to have an impact on the company's share price in the next several days.

Callidus, which is based outside of San Francisco, competes with software giants Oracle and IBM, as well as more focused start-ups Anaplan, Optymyze and Xactly. (NASDAQ:CALD). Moreover, Pier Limited Liability has 0.91% invested in Callidus Software Inc. The fund owned 306,657 shares of the technology company's stock after selling 302,564 shares during the period. Institutional investors own 91.25% of the company's stock.

1/30/2018-Lake Street Capital was Downgraded by analysts at Lake Street Capital from a "Buy " rating to a " Hold" rating.

"This move gives customers precisely what they want: the market leading sales performance, sales execution and sales enablement clouds combined with SAP Hybris and S/4HANA", said CallidusCloud CEO Leslie Stretch.

The Nasdaq-listed vendor based in California claims to be the global leader in cloud-based sales, marketing, learning and customer experience solutions.