SAP Unlikely To Quit Russia Before 2023

  • SAP SE SAP will miss its deadline to exit Russia before 2022 ends after it failed to find a buyer for the unit, Reuters reported.
  • In April, the Walldorf, Germany-based enterprise software company joined the likes of Oracle Corp ORCL and Salesforce Inc CRM in planning an exit from Russia after it sent troops into Ukraine.
  • In July, CFO Luka Mucic said SAP would complete the exit by the end of the year and take charge of 350 million euros.
  • Also Read: SAP Aims To Boost Prices Citing Inflation Woes
  • While it has shut down its data centers and cloud business in the country, SAP still has annual contracts for its maintenance business in Russia that it must service or face legal risks.
  • SAP had "significantly reduced" its workforce in Russia from 1,250 people and would have less than 100 staff there by year-end.
  • SAP has stopped providing support services to companies targeted by Western sanctions.
  • The withdrawal of some of SAP's services in Russia has already disrupted industries generating billions in revenue that are vital to the Russian economy.
  • SAP needed to give three-month notice before severing relationships, which it has not done because of concerns over legal repercussions.
  • SAP's maintenance contracts in Russia automatically renew annually and were extended in September for another year.
  • While some departing companies have fired local staff, SAP gave them the option to relocate from Russia.
  • Price Action: SAP shares traded lower by 0.40% at $90.76 on the last check Monday.
Market News and Data brought to you by Benzinga APIs
Posted In: NewsTechMediaBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!