• SAP, a German enterprise application software company, announced that it has entered into an agreement to sell its profitable corporate learning software business SAP Litmos to private equity firm Francisco Partners for an undisclosed amount. The transaction is expected to close in Q4 2022. 

• The decision to divest came during an ongoing company-wide portfolio review where it was determined that the value proposition and functionality of the SAP Litmos solution overlaps with its human experience management (HXM) suite SAP SuccessFactors. The company believes that, in the best interest of SAP Litmos’ employees, customers, and business partners, it should operate as a stand-alone firm. As a result the existing Litmos leadership team will continue in similar roles in the new standalone company.

• Founded in 1972, SAP is a German enterprise application software company best known for its enterprise resource planning (ERP) software. SAP offers two cloud solutions for corporate learning: SAP Litmos and SAP SuccessFactors. SAP Litmos includes a learning management system (LMS) and online training courses. SAP Litmos Training is a stand-alone LMS solution that can be integrated with other HR data systems while SAP SuccessFactors offers training to users to use on its own platform.

<ul><li> Analyst QuickTake: Earlier this year, in May 2022, the company announced that it was in discussion with Moelis & Co, an investment bank, to sell its corporate learning software business SAP Litmos, which was reportedly valued at USD 1 billion. The divestment is expected to streamline its business processes and help it focus on cloud-based revenue streams. In 2018, SAP reacquired Litmos from Callidus, a cloud software firm, for USD 2.4 billion and rebranded the platform as SAP Litmos. SAP Litmos currently serves more than 30 million users across 150 countries.</ul>