The C$536 billion ($390.1 billion) Canada Pension Plan Investment Board, along with private equity firm Silver Lake, have agreed to acquire software company Qualtrics for $12.5 billion.
Under the terms of the deal, Qualtrics’ shareholders, which include majority owner German software giant SAP, will receive $18.15 per share in cash. The acquisition price represents a 73% premium to the 30-day volume-weighted average price on January 25, the last full trading day before SAP announced it was looking into selling its stake in Qualtrics.
Silver Lake and CPP Investments will acquire 100% of the outstanding shares Silver Lake does not already own, including the entirety of SAP’s majority ownership interest. When the deal closes, Qualtrics will become an independent, privately held company and will continue to be led by CEO Zig Serafin.
The acquisition is fully financed by equity commitments from Silver Lake and co-investors, together with $1.75 billion in equity from CPP Investments and $1 billion in debt.
“This is a unique opportunity to invest in a category creator led by a strong management team that is shaping a rapidly growing market,” Hafiz Lalani, CPPIB’s head of direct private equity, said in a release. “We look forward to supporting the team in driving continued innovation as they help clients redefine their customer and employee experiences around the world.”
The acquisition has been approved by Qualtrics’ board of directors, as well as a Qualtrics committee of independent directors, and by SAP. The deal is expected to close in the second half of 2023, assuming it meets customary closing and regulatory approvals. At that time, Qualtrics’ common stock will no longer be publicly traded.
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Tags: Acquisition, Canada, Canada Pension Plan Investment Board, CPPIB, Pension Fund, Private Equity, Qualtrics, Silver Lake, software firm, Zig Serafin