Software giant SAP will likely do smaller "tuck-in" acquisitions, but investors should not expect big deals in the near future, CEO Bill McDermott told CNBC on Monday.
In January, SAP announced a deal to buy CallidusCloud for $2.4 billion. It was the first large acquisition for the German firm since it bought expense management platform Concur in 2014 for $7.3 billion.
But as SAP continues to push its cloud business, which is seen as a large future driver of growth for the company, large acquisitions are not in the pipeline, McDermott said.
"Our growth is primarily organic. You know we hadn't done an acquisition of size and scale in more than three years. This particular acquisition (CallidusCloud) I would consider a tuck-in based on its size," McDermott said Monday at the World Government Summit in Dubai.
"Will we do some more tuck-ins? Probably. But they will be small in nature, not enough to move the needle. Do not expect SAP to do big M&A (mergers and acquisitions), that's not on the horizon."