JP Morgan Arranges Loan For SAP SuccessFactors Buy

kanidy
December 04, 2011 03:19 PM

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JP Morgan Arranges Loan For SAP SuccessFactors Buy

JPMorgan Chase & Co is arranging the 1-billion-euro ($1.34 billion) loan that SAP AG is taking on to help pay for its $3.4 billion takeover of SuccessFactors, SAP co-Chief Executive Bill McDermott told Reuters.

"The 1 billion will probably be paid down within about a year. That's how we usually like to do it," McDermott said in an interview on Sunday, a day after announcing the takeover.

The deal, in which SAP is paying a premium of 52 percent over Friday's closing price of SuccessFactors shares, is a major push into cloud-computing services for the German business software company.

McDermott also said the deal could help the company beat its 2015 revenues target of 20 billion euros by as much as 1 billion.

"We had cloud figured out in our 20 billion. We are now upping that 20 billion. It could easily go to 21 billion,"

he said.

Reuters