|Bid||99.39 x 0|
|Ask||105.56 x 0|
|Day's range||101.66 - 103.10|
|52-week range||50.54 - 197.50|
|Beta (5Y monthly)||N/A|
|PE ratio (TTM)||N/A|
|Forward dividend & yield||N/A (N/A)|
|1y target est||N/A|
(Bloomberg) -- Atos SE shares jumped the most in more than nine months as investors cheered its decision to walk away from a deal to buy U.S. rival DXC Technology Co.Atos’s board of directors “unanimously determined not to pursue” the deal with DXC Technology, the company said in a statement Monday, confirming a Bloomberg News report. DXC’s board decided the Atos offer was inadequate and lacked certainty, the U.S. company said separately.A deal with DXC would’ve been transformational for Atos, creating an IT giant with scale to better compete with the likes of SAP SE and Accenture Plc. But investors were taken aback by the size of the combination, people familiar with the matter had said. DXC may have been valued at more than $10 billion in a deal, Reuters had reported previously.“Though the purchase would have given Atos scale to resist some pricing pressures, it wasn’t a perfect fit as the company looks to move toward high-growth digital services,” Tamlin Bason, a Bloomberg Intelligence analyst, said. “Atos’s decision to walk away from its proposed $10 billion acquisition of peer DXC Technology suggests that it’s opting against doubling down on legacy IT outsourcing services.”Atos rose as much as 7.4% in Paris on Tuesday, the biggest intraday gain since April, giving the company a market value of 7.4 billion euros ($8.9 billion). The shares had previously declined 14% this year. DXC fell about 10% in late trading Monday, valuing the company at $6.5 billion.“From the start, we considered the unsolicited and non-binding offer was far from a done deal, given the level of uncertainty prevailing on several topics and the extent of concern for many investors,” Gregory Ramirez, an analyst from Bryan Garnier, wrote in a note.It’s the second big transatlantic merger to fall through this year. Canadian convenience store operator Alimentation Couche-Tard Inc. walked away from a bid for grocer Carrefour SA last month after pushback from the French government.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- In Christian Klein’s first year as sole chief executive officer at SAP SE, the company’s shares had their worst performance in 12 years. The pandemic damaged sales. And he lost his co-CEO in a high-profile ouster that eliminated the only woman running a large, publicly traded German company.Klein has a bold plan to turn things around. It hinges on getting customers to adopt a suite of new cloud-based products that work faster and cost less to distribute and maintain. The aim is to put Europe’s largest software company on par with a generation of nimbler upstarts, such as Salesforce.com Inc. He’ll also need to find investor support for the expensive program in the middle of an economic slump.“If I had one wish for 2021, it would be that we can see a year where we can consistently execute our strategy and prove that it is the right one,” Klein said in an interview.Weaning users off older products carries risks. SAP works with large enterprises with a low tolerance for disruptions. And the switchover is cutting into profit, trading big upfront payments for smaller subscription installments. Though Klein knew the decision wouldn’t necessarily win applause from investors, they were initially supportive, he said.But as the company put the strategy into motion, customers radically scaled back their software purchases as they grappled with fallout from the Covid-19 pandemic. In an unscheduled announcement late on a Sunday night in October, SAP slashed its sales outlook and said growth and margin improvement would be limited for the next two years.Shares collapsed 22% the next day, wiping more than 30 billion euros ($37 billion) from the company’s market value. A January update showed signs of success in moving customers to the cloud, though the company warned the pandemic will continue hurting sales.Klein – a 40-year-old who’s spent his entire adult life at the Walldorf, Germany-based company after joining as a student in 1999 – has pushed forward during the first month of the new year. The company’s announced high-profile management changes, chief among them naming Julia White, a nearly 20-year Microsoft Corp. veteran, head of marketing.The company also expanded its partnership with Microsoft and will integrate some of their products, including adding Teams to SAP’s software. And SAP is moving ahead with plans to raise as much as $1.28 billion from listing a stake in its Qualtrics International Inc. unit.Still, Klein will have to convince investors to go along for the ride in a transition that could ultimately take years, in the middle of a pandemic that’s continuing to hammer customers.AXA Investment Managers, which has held a stake in SAP for 20 years, cut its European funds’ holding in the company by a third in November “to acknowledge the fact that on a short-term basis we have lost some momentum,” said Gilles Guibout, a portfolio manager. Though Guibout agrees a faster move to the cloud is necessary, SAP’s course correction is likely to mean the company has to “over invest” for the next three years, he said.With a market value of more than 128 billion euros, SAP is Europe’s sole contender to rival U.S. enterprise software giants such as Salesforce and Oracle Corp. Its founders, Hasso Plattner and Dietmar Hopp, are Europe’s two richest tech billionaires with a combined net worth of just over $24 billion, according to data compiled by Bloomberg.Plattner, who remains at the company as its chairman and largest shareholder, backed Klein after the shares dropped in October, buying an additional 249 million euros in stock in a show of support.“When one of the largest shareholders buys more shares it gives me confidence,” Klein said. “I got that feedback from the whole supervisory board.”Read More: SAP’s Biggest Rout in 24 Years Has Its Leaders Buying the StockIt wasn’t the first time Plattner had taken Klein’s side. Klein had initially shared the CEO role with Jennifer Morgan in the U.S. She was an outgoing, American marketing guru with experience running the company’s most crucial business, the cloud division. He was the workhorse and former chief operating officer, more comfortable behind the scenes. The two were initially seen as complements.But the pandemic frayed the relationship as different time zones and outlooks slowed decision making and caused clashes.Klein got the news that the supervisory board had voted Morgan out on April 20, the same day his second child was born. Plattner told employees in a memo at the time that it was “crucial to have one sole CEO navigate us through this unprecedented change.” Klein has said the pair disagreed on several decisions, and his last few conversations with Morgan were “pretty emotional,” but declined to say more. Morgan has since taken a job at Blackstone Group Inc. and declined to comment for this story.Read More: SAP Drops Co-CEO Role After Six Months as Virus Upends Plans Now on his own, Klein also had to confront the legacy of his predecessor Bill McDermott.For Klein’s plan to work, SAP has to be able to offer customers a suite of products that work together seamlessly. But McDermott liked to buy his way into new technologies, spending more than $30 billion on acquisitions during his approximately 10-year tenure, according to data compiled by Bloomberg. The shopping spree put together a collection of businesses that may have helped modernize SAP’s offerings, but weren’t necessarily well integrated.Read More: SAP’s Failure to Adapt Just Cost It $38 Billion: Alex WebbMcDermott’s strategy showed mixed results, and SAP attracted the attention of notorious activist Elliott Management Corp., which built up a stake and demanded the company focus on its profit and share price. The company announced changes in 2019 that appeased the group, though McDermott resigned months later saying that a decade was “a long time” to be CEO.The Qualtrics IPO later this year will represent a high profile break with the past as the company sells a stake in McDermott’s biggest deal. The U.S. business, which makes software for conducting customer surveys, cost SAP $8 billion about two years ago.Read More: SAP Spinoff Qualtrics Boosts Price Range for $1.3 Billion IPOThis year is set to be crucial for SAP, when the nearly half-century old German software giant must prove to investors and customers that it can put past missteps behind it keep up with its larger U.S. rivals.“SAP is really at a turning point right now because we think there’s this once-in-a-lifetime vulnerability happening,” said Julie Bhusal Sharma, an analyst for Morningstar Inc. “What he’ll have to deal with is making this migration a much smoother process for its existing customer base, I think that thus far it’s been ruffling a lot of feathers.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- SAP SE’s attempt to accelerate moving customers to cloud-based software began to see signs of success, although the company warned sales will continue to be impacted by the effects of the coronavirus pandemic.The corporate software maker said 2021 cloud and software revenue, excluding some items, will be as much as 23.8 billion euros ($28.9 billion) in constant currency. When currency is adjusted, revenue may fall as much as 4% from a year earlier, Walldorf, Germany-based SAP said late Thursday in a statement.“This outlook assumes the Covid-19 crisis will begin to recede as vaccine programs roll out globally, leading to a gradually improving demand environment in the second half of 2021,” the company said.Shares in SAP were up 1% in early trading on Friday.SAP has spent years attempting to move away from legacy software that resides in clients’ computer servers, to cloud-based software, which is delivered over the internet. Chief Executive Officer Christian Klein is trying to develop such software, after his predecessors relied on acquisitions to do so. SAP has seen uneven results in this modernization effort and the company has twice in the past year warned that the pandemic would stymie client deals.Most notably, SAP’s shares crashed in November, falling 21%, the biggest intraday fall since 1999, after it cut its revenue forecast for the full year and warned the pandemic would hurt demand. Klein said at the time that the pandemic will delay SAP’s goals for revenue by one or two years.The latest results show a “slight improvement” in new license sales, but it is too early to call a turnaround, according to Bloomberg Intelligence analyst Anurag Rana. Cloud sales in North America and Europe beat SAP’s expectations, as well as software licenses.SAP, which was set to report earnings later this month, said fourth-quarter revenue declined 6% to 7.54 billion euros, in line with analysts’ average estimate of 7.5 billion, according to data compiled by Bloomberg.SAP reiterated that it expects limited growth and margin improvement over the next two years, and moved expectations to meet its 2023 strategy plan out to 2025.Demand for Qualtrics, the U.S. customer-survey software business that SAP is planning to list this year, was also strong, Berenberg analyst Andrew DeGasperi wrote in a note. In December Qualtrics filed for what could be one of the first U.S. initial public offerings of 2021, just over two years after it was acquired by SAP.(Updated with shares, additional context.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.