Part 2/7:
Qualtrics, a rapidly emerging player in the tech landscape based in Utah, had been preparing for an initial public offering (IPO) aimed at raising approximately $200 million. SAP’s decision to purchase Qualtrics prior to its IPO raises questions about the valuation and timing of the deal. While SAP clearly sees value in Qualtrics' offerings, the immediate market reaction was less than favorable, with SAP shares dipping by about 6% following the announcement. Analysts speculated that investors perceived the acquisition price as potentially inflated, and it reflected a typical market response to acquisitions where the acquiring company often sees a drop due to perceived overpayment.