Qualtrics Acquisition: Key Details, Impact, and What Comes Next

Silver Lake and CPP Investments have acquired Qualtrics for $12.5 billion, marking a significant move in the experience management industry. This all-cash transaction will see Qualtrics transition to a privately held company, continuing under the leadership of CEO Zig Serafin. The acquisition underscores the strategic importance of experience management in today's market, positioning Qualtrics for future growth and innovation.

What Is Qualtrics?

Founded in 2002, Qualtrics offers a comprehensive suite of experience management solutions, including customer experience, employee experience, and strategy & research. Its XM platform is distinguished by its integration of specialized AI, which helps uncover insights from large datasets and prioritize actions to drive results. With a global reach of 20,000 customers in over 100 countries, Qualtrics stands out for its tailored solutions across various industries and its extensive resources, including training and certification programs.

Who Acquired Qualtrics?

Silver Lake is a global leader in technology investing, known for partnering with management teams to build and grow technology-driven companies. Their key service is managing a diverse portfolio across sectors such as Content & Entertainment, Enterprise Software, and Financial Technology. With $103 billion in assets under management and an aggregate portfolio enterprise value exceeding $1 trillion, Silver Lake holds a significant market position, influencing industries worldwide through its extensive investments and strategic partnerships.

When Was Qualtrics Acquired?

Silver Lake and CPP Investments completed the acquisition of Qualtrics on June 28, 2023. This acquisition aligns with the growing importance of experience management (XM) in the business world. The timing is significant as it coincides with increased investments in AI and cloud-based solutions, reflecting a broader industry trend towards digital transformation. The deal positions Qualtrics to leverage these technologies for accelerated growth and innovation, underscoring the strategic value of XM in today's market.

Why Was Qualtrics Acquired?

• Market Expansion: The acquisition positions Qualtrics for its next chapter of growth at scale, aiming to become the next great enterprise cloud software platform. The partnership with Silver Lake and CPP Investments is expected to drive category-defining innovation and efficient growth, expanding its market presence and capabilities.
• Technology Integration: Qualtrics' AI-powered platform helps over 19,000 organizations deliver exceptional experiences, integrating advanced technology into its offerings. The ongoing partnership with SAP will continue to enhance Qualtrics' capabilities, ensuring seamless technology and service integration.
• Competitive Advantage: Qualtrics is the leader and pioneer of the experience management (XM) software category, serving over 19,000 organizations. The acquisition by Silver Lake and CPP Investments, along with support from other investors, strengthens Qualtrics' leadership in the XM category, providing a technological edge over competitors.

Acquisition Terms

• Acquisition Price: $12.5 billion
• Payment Method: All-cash transaction
• Key Conditions or Agreements:
  • Qualtrics shareholders, including SAP, will receive $18.15 per share in cash.
  • The transaction is fully financed by equity commitments from Silver Lake and co-investors, along with $1.75 billion in equity from CPP Investments and $1 billion in debt.
  • The transaction has been approved by Qualtrics’s Board of Directors, a committee of independent directors, and SAP as the principal shareholder.
  • The transaction is expected to close in the second half of 2023, subject to customary closing conditions and regulatory approvals.
  • Upon completion, Qualtrics’s common stock will no longer be listed on any public market.
  • Qualtrics and SAP intend to maintain a go-to-market and technology partnership to service existing joint customers and target new customer opportunities.

Impact on Qualtrics

The acquisition of Qualtrics by Silver Lake and CPP Investments is set to bring notable changes to the company's operations and management. Qualtrics will transition to an independent, privately held company, continuing under the leadership of CEO Zig Serafin. The company will maintain its headquarters in Provo, Utah, and Seattle, Washington. This shift aims to position Qualtrics for its next chapter of growth, leveraging the strategic vision and financial backing of its new owners to drive innovation and scale.

In terms of product offerings and services, the acquisition is expected to accelerate Qualtrics' innovation, particularly in AI and other advanced technologies. This will enhance the company's ability to deliver exceptional experiences and build deep relationships with customers and employees. While specific employee and customer reactions have not been detailed, the overall sentiment suggests optimism about the future potential and strategic direction of Qualtrics. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly, ensuring a smooth and efficient transition.