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SAP Sets Sights on Big Data Startup

Bernd Leukert, executive board member for technology at SAP SE, looks on as the software maker announces their fourth quarter results in Walldorf, Germany, on Friday, Jan. 22, 2016. SAP showed progress in remaking itself as a supplier of online software, predicting sales and operating profit next year topping its previous forecast as it moves more customers to a new version of its core software suite and adds cloud-computing sales. Photographer: Martin Leissl/Bloomberg via Getty Images
Bernd Leukert announced SAP's purchase of a big data specialist.
  • Why it matters

    Why it matters

    SAP’s purchase, while small, will strengthen it strategically in terms of big data analysis and cloud computing, areas where it was in danger of falling behind.

  • Facts

    Facts

    • Altiscale, based in Palo Alto, California, enables customers to save and to process in the cloud vast amounts of data of different kinds, namely from machines.
    • SNS Research estimates that investments in big-data technologies amount to $46 billion this year alone.
    • SAP is Europe’s largest software company.
  • Audio

    Audio

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The world’s largest producer of business software has put an end to weeks of speculation that it was acquiring the 4-year old U.S. company Altiscale, a move that should help the company expand into the growing realm of big data.

An SAP executive announced the deal on Tuesday at a corporate event in Germany. Bernd Leukert, a member of the SAP executive board in charge of innovation and technology, said the company was expanding its big-data analysis and cloud software portfolio by acquiring Altiscale, confirming earlier reports by U.S. media.

He declined to name a price, but the deal could be worth at least $125 million, U.S. website VentureBeat reported last month, citing a person familiar with the matter.

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