SAP is considering the sale of SAP Litmos, a portfolio of training software.
According to Reuters, SAP wants to divest Litmos for roughly one billion dollars. The move is said to be part of a reorganization. SAP is shifting its portfolio and focussing on cloud services.
SAP acquired Litmos in 2018. At the time, Litmos developed sales and customer service services. Its software was rebranded and continued as SAP Litmos.
Billion-dollar unit
Reportedly, Moelis & Co was hired as a financial advisor to SAP. The bank is said to be overseeing the sale. SAP Litmos’ value is estimated at around $1 billion (approximately €950 million). Both Moelis & Co and SAP refrained from commenting.
SAP is currently reviewing its entire product portfolio. The ERP vendor wants to increase its focus on subscription and cloud services. Streamlining its portfolio is essential to the strategy.
Litmos overlaps
In some ways, SAP Litmos overlaps with SAP SuccessFactors, which is a possible reason for divesting the software. Litmos is similar to learning platforms such as ADP and BambooHR, while SAP SuccessFactors focuses on training users in SAP’s Human Experience Management suite (HRM).
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