‘Golden Era Of Tech In Utah’ As Qualtrics Acquired For $8 Billion
Nov 12, 2018, 7:52 PM | Updated: Nov 13, 2018, 12:38 am
PROVO, Utah – Utah’s Silicon Slopes reacted to the news that Provo-based software company Qualtrics will be acquired for $8 billion.
“This is the golden era of tech in Utah. This is the golden era of entrepreneurs in Utah,” said Silicon Slopes executive director Clint Betts. “There’s never been more capital. There’s never been more talent. There’s never more attention on our state in our history.”
On Sunday, German software corporation SAP announced it entered into an agreement with Qualtrics International Inc. to purchase all outstanding shares of Qualtrics for $8 billion in cash. The deal was expected to close in the first half of 2019.
“The combination of Qualtrics and SAP reaffirms experience management as the groundbreaking new frontier for the technology industry,” SAP CEO Bill McDermott said in a prepared statement. “SAP and Qualtrics are seizing this opportunity as like-minded innovators, united in mission, strategy and culture.”
Once the transaction is complete, Qualtrics’ dual headquarters are expected to stay in Provo and Seattle, according to a joint press statement from the two companies. Also, Qualtrics’ leadership is expected to stay the same.
“Supported by a global team of over 95,000, SAP will help us scale faster and achieve our mission on a broader stage,” Qualtrics CEO Ryan Smith said, adding that the deal was a “once-in-a-generation opportunity.”
The Qualtrics deal wraps up a banner year for Utah’s tech industry, Betts said, adding that 2018 will be remembered for decades to come.
“The time and the moment when our community put our flag in the ground and said, ‘We are no longer a regional tech hub, we are a world-class tech hub who builds companies that can stand up against anyone in the entire world,’” he said.
Troy D’Ambrosio with the University of Utah’s Lassonde Entrepreneur Institute said the Qualtrics acquisition will inspire and possibly provide funding for the next generation of start-ups in Utah.
“There’s a lot of people who have made money off that deal,” D’Ambrosio said. “That money is going to recycle back into the startup ecosystem.”
Qualtrics’ success highlights the strength of Utah’s entrepreneurial ecosystem, D’Ambrosio went on to say.
“I think the ripple effects are going to be felt for a very long time here in Utah,” D’Ambrosio added.
Betts reminds that while the timing may be right for Utah entrepreneurs, success doesn’t come without hard work.
“There’s no shortcuts, there’s no easy pass, there’s no schemes to make this happen quicker,” Betts said. “Qualtrics is an overnight success story 16 years in the making.”
