What the bad jobs report means for markets
SAN FRANCISCO/WALLDORF - SAP SE (NYSE:SAP), a prominent player in the software industry with a market capitalization of $326 billion, announced Friday it has entered into an agreement to acquire talent acquisition software provider SmartRecruiters, aiming to strengthen its SuccessFactors human capital management suite. According to InvestingPro analysis, SAP’s stock is currently trading above its Fair Value, reflecting strong investor confidence in the company’s growth strategy.
The transaction is expected to close in the fourth quarter of 2025, subject to regulatory approvals and customary closing conditions. Financial terms were not disclosed.
The acquisition will integrate SmartRecruiters’ recruitment automation and AI-enabled candidate engagement capabilities with SAP’s existing HR tools, allowing customers to manage the entire candidate lifecycle in a single system.
"Hiring the right people is not just an HR priority – it’s a business priority," said Muhammad Alam, member of the Executive Board of SAP SE, SAP Product & Engineering, in a press release statement.
SmartRecruiters, founded in 2010, provides Software-as-a-Service solutions to more than 4,000 organizations globally. The company’s portfolio will continue to be available as a standalone offering "for the foreseeable future," according to the announcement. InvestingPro data reveals SAP maintains strong profitability with a 73.8% gross margin, making it well-positioned to integrate new acquisitions. For deeper insights into SAP’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
Rebecca Carr, CEO of SmartRecruiters, stated that joining SAP "presents a tremendous opportunity for enterprises worldwide to benefit from our industry leading approach to talent acquisition."
The combined offering aims to provide enhanced applicant tracking, candidate screening, and data-driven hiring capabilities while reducing time-to-hire and improving the candidate experience.
J.P. Morgan served as exclusive financial advisor to SmartRecruiters, with Gunderson Dettmer acting as legal counsel. SmartRecruiters’ investors include Insight Partners, W Capital Partners, Rembrandt Venture Partners, and Silver Lake Waterman.
In other recent news, SAP announced the acquisition of SmartRecruiters to enhance its SuccessFactors platform. Although financial details were not disclosed, SmartRecruiters was valued at $1.5 billion during its 2021 Series E funding round and achieved $71 million in sales last year. Barclays recently raised its price target for SAP to $322, maintaining an Overweight rating, noting a solid revenue quarter with accelerated cloud revenue growth. Berenberg reiterated its Buy rating on SAP stock following solid Q2 2025 results, despite a revenue miss due to currency fluctuations. KeyBanc also maintained its Overweight rating, highlighting SAP’s seamless cloud transition and stable cash flow and margin targets. Bernstein increased its price target to $344, citing significant margin improvements in SAP’s quarterly results. These developments reflect ongoing confidence in SAP’s financial performance and strategic direction.
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