SAP has announced the acquisition of California’s Callidus Software for $2.4 billion to help boost its cloud-based offerings, writes Michelle Caffrey for the Philadelphia Business Journal.

Callidus Software has a suite of sales and marketing applications that are customer-engagement driven. This helps companies “align sales, compensation, corporate goals, and ensure the real-time flow between the field and data departments,” according to a company statement.

SAP, which has its North American Headquarters in Newtown Square, aims to complete the acquisition at $36 per share. This is a 21 percent premium over Callidus’s 30-day, volume-weighted average price per share. It will be financed through existing cash reserves and a term loan.

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SAP CEO Bill McDermott said it is buying Callidus to connect “the back office to the front office in this consumer-driven revolution.”

The move fits with SAP’s new strategy of shifting focus to its H/4 HANA cloud platform. The acquisition has already been approved by the Callidus Board of Directors, and should close in the second quarter of this year.

McDermott said that while the acquisition “won’t raise revenues, it was important because of Callidus’s position as a leader in its space.”

Read more about SAP’s latest acquisition in the Philadelphia Business Journal by clicking here.