Newtown Square’s SAP, the market leader in innovative enterprise application software, has acquired Qualtrics International, a rival of SurveyMonkey, for $8 billion, writes Cromwell Schubarth for the Philadelphia Business Journal.

The Utah-based company has raised around $450 million in venture funding. It was already valued at around $2.5 billion in April 2017, during its last private round of funding.

Qualtrics is bigger and has been growing faster than SurveyMonkey, which saw its stock drop after its rival filed its IPO.

The newly acquired company posted sales of $184.2 million in the first half of 2018, while SurveyMonkey had sales of $121.2 million over the same period. Qualtrics also posted a modest profit of $2.5 million last year, while SurveyMonkey lost $24 million.

During a conference call about the deal, SAP CEO Bill McDermott compared it to Facebook’s acquisition of Instagram. He said that SAP plans to merge its massive large store of operational data with the vast collection of user experience data held by Qualtrics.

After the acquisition is finalized, Qualtrics will continue to be run by Ryan Smith, its co-founder and CEO. It will also continue to operate from its dual headquarters in both Provo and Seattle.

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

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