SAP Buys Callidus Software, Informa, UBM Merger to Shape Event Industry

Sarla Buch
30 Jan, 2018
New York City

Loomis annual profit missed estimates. Philips Electronics reported higher profit. Siemens Gamesa held out for positive outlook in India. SAP plans to acquire Callidus in $2.4 billion. UBM agreed to be acquired by Informa for

[R]4:00 PM Frankfurt – Loomis annual profit missed estimates. Philips Electronics reported higher profit. Siemens Gamesa held out for positive outlook in India. SAP plans to acquire Callidus in $2.4 billion. UBM agreed to be acquired by Informa for £3.9 billion.[/R]

In London trading, FTSE 100 index dropped 52.45 or 0.7% to 7,619.08 and in Frankfurt the DAX index declined 112.58 or 0.8% to 13,211.92.

In Paris, CAC 40 index slumped 27.28 or 0.5% to 5,494.30.

Loomis AB plunged 8.6% to 301.60 Swedish kronor after Sweden-based cash handling services provider reported total revenues in the year ending in December jumped 3% from a year ago to 17.2 billion kronor.

Net income in the quarter soared 13.5% to 1.4 billion kronor from 1.3 billion kronor in a year ago period and diluted earnings per share advanced to 18.99 kronor from 16.73 kronor.

Koninklijke Philips NV declined 4.5% to €32.41 after the Netherlands-based health technology provider reported revenues in the year ending in December rose 2.3% from a year ago to €17.8 billion.

Net profit in the period surged 14.5% to €1.7 billion from €1.5 billion in a year ago period and diluted earnings per share jumped to €1.75 from €1.56.

""We expect our markets to grow between 3% and 5% on a comparable basis in 2018,"" said chief executive officer Frans van Houten.

Siemens Gamesa Renewable Energy SA soared 4.9% to €12.82 after Spain-based wind turbine maker said revenues in the first-quarter ending in December declined 23% from a year ago to €2.1 billion and net income tumbled 87% to €35 million.

The wind-turbine maker said it estimated markets in India had trouble in 2017 which will stabilize in 2018 and return to normal in 2019.

SAP SE dropped 1.7% to €90.55 after Germany-based software and service provider said its U.S.-based unit SAP America Inc plans to acquire cloud-based human resources software maker Callidus Software Inc for about $2.4 billion.

The enterprise application software developer reported revenues in the year ending in December soared 6% from a year ago to €23.5 billion.

Net profit in the period jumped 10% to €4 billion from €3.6 billion in a year ago period and diluted earnings per share advanced to €3.35 from €3.04.

Separately today, SAP forecasted fiscal 2018 revenues in the cloud business to jump between 27% and 33% or in the range of €4.8 billion to €5 billion.

SAP also estimated fiscal 2018 total revenue growth in the range of €24.6 billion to €25.1 billion and operating profit to be in a range of €7.3 billion to €7.5 billion.

UBM Plc jumped 4.4% to 907.50 pence after the U.K.-based event organizer agreed to be acquired by domestic larger rival Informa Plc for about £3.90 billion or $5.47 billion.

Under the terms, shareholders of UBM will receive 1.083 new Informa shares and 163 pence in cash.

The transaction is expected to close in the second-quarter of 2018.

Separately today, UBM forecasted fiscal 2017 total group revenue of about £1 billion form a year ago period.