Market Overview

Is Qlik Tech Set to be Targeted by SAP?


Analysts on Tuesday were predicting the possibility of SAP (NYSE: SAP) making a move to acquire Qlik Technologies (NASDAQ: QLIK).

It certainly is not outside of the realm of possibility. Monday saw BMO Capital reiterate its Outperform rating on QLIK while raising the price target to $36 from $34.

BMO's Karl Keirstead, after visiting Gartner's Business Intelligence Summit last week, came back thinking that "large enterprises are becoming more data-centric and are acquiring more licenses to extend reporting and analytics tools deeper into their organizations.”

Therefore, it is entirely possible that small business intelligence companies like Qlik have more to gain than companies like Oracle (NASDAQ: ORCL). There has been a shift of late to lighter-weight data discovery tools from Qlik, as well as TIBCO Spotfire and Tableau Software.

Traditional BI reporting tools, like SAP BusinessObjects are starting to be considered too complex, structured and slow. SAP will have to fill that product gap, and that is why a SAP-Qlik merger is being widely touted.

To be fair, SAP has hardly been doing badly. Jefferies said in a research report on March 26 that SAP ended FY11 w/ 183K+ customers in 130+ countries vs. 109K+ customers in 120+ countries at the end of FY10; SAP Business All in One offers 660+ industry specific solutions in more than 55 countries vs. 700 solutions in 50 countries at the end of FY10.

Posted-In: JefferiesEarnings News M&A Analyst Ratings Best of Benzinga


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