Rumors were circulating this week that SAP would buy Signavio, a Berlin-based business process automation startup, and the company certainly made it official today. The companies did not disclose the purchase price, but Bloomberg reported earlier this week that the deal could be worth $ 1.2 billion.
With Signavio SAP gets a cloud-native business process management tool. SAP CFO Luka Mucic sees a world where understanding and automating business processes has become a critical part of a company’s digital transformation efforts.
“I cannot stress the importance for companies to be able to design, evaluate, improve and transform business processes across the enterprise to support new capabilities and business models,” he said in a statement.
While traditional BPA business tools have been around for years, having a cloud-native tool gives SAP a much more modern approach to addressing this problem, and the ability to automate business processes via the cloud has become more important during the pandemic where many employees work entirely from home.
SAP also sees Signavio as a key missing piece in the company’s Business Process Intelligence unit. “The combination of business process intelligence from SAP and Signavio creates a leading end-to-end business process transformation suite to help our customers meet the requirements they need to gain competitive advantage,” he said.
In recent times, SAP has been dedicated to the automation of processes. In fact at SAP TechEd in December, the company announced SAP Intelligent Robotic Process Automation, its foray into the RPA space. This should fit nicely alongside her.
Dr. Gero Decker, co-founder and CEO of Savigno, believes SAP resources help push the company beyond what it could have done on its own. “Considering SAP’s positioning, geographic reach and financial strength, SAP is the largest and best platform to bring process intelligence to every organization,” he said in a statement.
The argument of increasing resources and reach is what almost every CEO of an acquired company does, but being dragged into a company the size of SAP can be a double-edged sword. Yes, it has vast resources, but it can also be difficult for an acquired company to find its place in such a large pond. How they fit in and make that transition from startup to cog in a large company will go a long way in determining the success of this transaction in the long run.
Signavio was launched in 2009 in Berlin and raised nearly $ 230 million, according to data from Crunchbase. Investors include Apax Digital and Summit Partner. The most recent investment was the July 2019 C Series for $ 177 million, which reached a valuation of $ 400 million.
Customers include Comcast, Bosch, Liberty Mutual and yes SAP. Maybe now he will get a discount.