SAP has unveiled its acquisition of German startup LeanIX. The latter helps firms ward off technical debt, a phenomenon where outdated systems hinder modernisation, and the focus should be on understanding your business’s architecture.
This acquisition follows SAP’s 2021 purchase of Signavio, another German enterprise, for a hefty $1.2 billion. Though the exact amount remains undisclosed, sources hint that LeanIX’s price was slightly steeper.
About SAP
SAP SE is a German multinational headquartered in Walldorf, Baden-Württemberg, known as the world’s premier enterprise resource planning (ERP) software vendor. Beyond its flagship ERP offerings, SAP provides a diverse range of software products encompassing areas like CRM, HCM, and supply chain management, among others.
Towards faster modernisation
Capitalising on LeanIX’s prowess, SAP aspires to accelerate the modernisation of companies’ software stacks. CEO Christian Klein emphasises the need to view systems and processes collectively and utilise prior experiences for swift modernisation. “Together with LeanIX, we aim to unveil a unique transformation suite, offering holistic assistance to our clientele on their transformation trajectories,” Klein articulated.
To actualise this, SAP is formulating a new ‘business transformation’ suite, amalgamating contributions from Signavio, LeanIX, and its prior developments. This suite promises an exhaustive perspective on business processes and applications, encompassing process dependencies and potential transformation repercussions on IT.
André Christ, LeanIX CEO and co-founder, acknowledges the complementary capabilities of both entities. He remarked, “While SAP enlightens businesses with profound insights, we streamline technology, facilitating easy software consumption.”
LeanIX’s innovation
Highlighting LeanIX’s recent ventures, the company last month proclaimed a collaboration with Microsoft, unveiling the LeanIX AI Assistant. This AI tool allows users to interface with software for queries, document generation, and architectural suggestions. SAP presumably finds the AI element a crucial enhancement, fostering quicker transformations.
Merging distinct technological segments is ambitious. The challenge for giants like SAP is to harness the zeal of newly acquired startups without suppressing their innovative essence. However, the pre-existing partnership between the two companies is a favourable aspect.
Addressing the technical debt dilemma
David Linthicum, Deloitte’s chief cloud strategy officer, emphasised the divide in companies’ digital transformation strategies in a TechCrunch interview. Companies either meticulously plan and tackle technical debt or grapple with mounting technical debt, struggling to upgrade.
Validating Germany’s tech prowess
Thomas Preuss of DTCP, LeanIX’s early investor, views this acquisition as affirmation for Germany’s tech ecosystem.
This deal is testament to Europe’s accelerating pace, challenging the US in Enterprise SaaS quality and product.
Thomas Preuss of DTCP, early investor in LeanIX
LeanIX, established in 2012, has amassed nearly $120 million in funds, notably an $80 million Series D in 2020. The enterprise boasts 1,000 customers, a considerable leap from 300 during its Series D round, with revenues nearing €100 million. The acquisition’s culmination is anticipated in the upcoming quarter, pending customary regulatory procedures.
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