SAP is acquiring Qualtrics for $8 billion, snapping up the survey software company just before its planned IPO.
The all-cash deal has been approved by the boards of both companies and by Qualtrics shareholders, SAP said in a statement on Sunday.
Qualtrics competes with SurveyMonkey, which went public in September. Qualtrics is bigger and growing faster than SurveyMonkey and is also more profitable.
SAP has been counting on new cloud products for growth as the transition away from traditional desktop software has taken business from its core enterprise resource planning business. In October, the German software company raised its outlook following a 41 percent jump in third-quarter cloud revenue. SAP said it now expects revenue growth of 7.5 percent to 8.5 percent this year, up from the prior range of 6 to 7.5 percent.
The deal is SAP's second-biggest acquisition ever, following the $8.3 billion purchase of travel and expense software company Concur in 2014. To build its cloud business, SAP acquired SuccessFactors in 2011 for $3.4 billion, and earlier this year purchased Callidus for sales performance management at a price of $2.4 billion.