SAP (NYSE:SAP) has acquired Datango, a German company which specializes in workforce performance support software. [1] Datango primarily provides content development, workforce training and educational tutorial software. Datango’s software enables users to create software documentation, training presentations and online learning materials which are used by enterprise customers to train their employees. SAP already had a partnership with Datango, wherein Datango’s training software was deployed as part of Business ByDesign, SAP’s cloud-based ERP suite. SAP competes primarily with Oracle (NASDAQ:ORCL), Microsoft (NASDAQ:MSFT) and Salesforce.com (NYSE:CRM) in enterprise software.
Check out our complete price analysis for SAP
Datango Acquisition to Help SAP Extend Lead in Enterprise Education Software
SAP’s purchase of Datango will not only help it provide better training of its own products to its customers, but it will also help it maintain the lead in enterprise education software. It will likely be rolled into its SAP’s ERP offering. SAP currently leads the enterprise resource planning market with nearly 29% market share. We expect its market share to decline marginally going forward, due to increasing competition. However, acquisitions like these could help it gain additional ERP market share.
“The workforce performance tools market has become increasingly strategic and critical to our customers’ success, and Datango is a proven leader in this space. By having its own product in this market, SAP can now deliver and accelerate innovations and produce robust content for our customers in the future,” said Markus Schwarz, senior vice president and global head of SAP Education.
ERP software accounts for nearly 38% of SAP’s $63 Trefis price estimate, which stands nearly 15% above its current market price.
Understand How a Company’s Products Impact its Stock Price at Trefis
Notes:
