Qualtrics goes private in $12.5bn all-cash deal led by Silver Lake

Silver Lake, together with its co-investors and the Canada Pension Plan Investment Board (CPP Investments), has finalized the previously announced all-cash acquisition of Qualtrics International, a deal valued at $12.5 billion.

Announced in March 2023, this move takes the US-based experience management (XM) software company private and discontinues the trading of Qualtrics’ common stock on the NASDAQ stock exchange.

Qualtrics is recognized for its cloud-native software solutions that enable businesses to rapidly pinpoint and rectify any friction points within their operations, covering digital interfaces and human interactions.

Qualtrics CEO Zig Serafin commented on the company’s leading position in the experience management sphere, highlighting how their AI-powered platform assists over 19,000 organizations in delivering top-notch experiences and fostering profound relationships with their customers and employees. He added, “Silver Lake’s deep understanding of our business and vision for Experience Management, combined with their strategic and operational expertise and the support of our other investors, creates an incredible opportunity for Qualtrics to accelerate our innovation and category leadership.”

Silver Lake completes $12.5bn acquisition of experience management firm Qualtrics. Photo courtesy of Ben P L from Provo, USA/Wikimedia Commons.

As per the deal terms, Silver Lake, its co-investors, and CPP Investments purchased all of the outstanding Qualtrics shares not owned by the former group for $18.15 per share. SAP, holding 423 million Qualtrics shares, divested its stake for nearly $7.7 billion. Despite selling its stake, SAP assured it will remain a critical go-to-market and technological ally for Qualtrics, aiding their mutual clients and fostering their success.

With the deal’s conclusion, global venture capital firm Accel, merchant bank BDT & MSD Partners, and Michael Dell’s family investment office DFO Management have all invested in Qualtrics alongside Silver Lake. Accel, one of the initial investors in Qualtrics, invested $500 million, while BDT & MSD Partners and DFO Management co-invested $250 million each, totalling a collective investment commitment of $500 million.

Egon Durban, co-CEO of Silver Lake, expressed his belief in Qualtrics’ bright prospects and noted, “The leadership team has a powerful vision, and we are excited to continue our partnership with Ryan and Zig alongside the other investors to support Qualtrics as it realizes its full potential as an independent, private company.”