SAP to Buy SuccessFactors for $3.4 Billion
December 6, 2011
Software company SAP AG has announced plans to purchase SuccessFactors Inc., a cloud computing company, for $3.4 billion.
When asked about the recent increase in deal activity in the cloud computing sector, Kaye Scholer Corporate Partner Diane Frankle said, “I think that the real push here is that mobile computing has really taken off, so people have to be able to show that they have the cloud capability.”
“Cloud capability is essential for software applications now, and applications software companies who don’t have the capability will be buying it. I think you will see more deals in this space in the next year,” she added.
Frankle concluded, “It is a good time to be a cloud company.”