SAP: Feedback from Hybris acquisition conference call
BUY, Fair Value EUR73 (+28%)
We reiterate our Buy rating and our DCF-derived fair value to EUR73. Yesterday afternoon SAP announced the acquisition of Hybris, a multi-channel commerce software platform vendor, for an undisclosed sum. The deal would be completed in Q3 13. At first glance, we estimate it could increase SAP’s revenues by less than 1% and be EPS accretive in the same ballpark. Based on price assertions mentioned in the press, Hybris would be paid a substantial price (we think at est. 7-10x 2012 sales) but it generates very strong growth and should help SAP to build the CRM platform of the future.
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