‘SAP will put telecom division up for sale’

‘SAP will put telecom division up for sale’

ERP and CRM specialist SAP is planning to sell a division focused on the telecom market, according to Bloomberg. Right about now, talks are already being held with potential buyers.

According to Bloomberg, SAP is planning to sell a subdivision that develops special telecom software. This software is designed to enable users to call each other and send messages through different carriers. This software platform should also make payments possible.

The technology of this platform comes from the company Sybase, which was taken over by the ERP and CRM specialist in 2006. This company would have acquired the technology again through an acquisition of the company Mobile 365. SAP’s telecom business would generate approximately $50 million in pre-tax revenue annually and total sales of $250 million.

Talks ongoing

In the meantime, SAP is apparently already talking to potential buyers via an intermediary. It is not known who these buyers are. The price for the SAP division could be a few hundred million dollars, according to experts.

Well, as Bloomberg indicates, a definitive sale of this business unit by SAP is not a ‘must’. The ERP and CRM specialist can always decide to keep this business unit anyway.

On the other hand, Bloomberg continues, a sale of legacy components by SAP would be beneficial. Especially since the company is now focusing more on cloud-based solutions and products. This is the plan in order to be able to continue to compete with parties such as SalesForce.