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SAP To Go Greek In Latest Organizational Move

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SAP To Go Greek In Latest Organizational Move

German software giant SAP (NYSE: SAP) has announced that the company plans on going Greek.

In its latest efforts to reorganize its European operations, Co-CEO Jim Hagemann Snabe announced that SAP is set to move its southern European headquarters to Greece in the latest sign of positive news for the beleaguered nation.

Two weeks ago, Benzinga considered investments in Greece for investors as the next potential big idea. With large companies such as SAP set to move to the Mediterranean nation, the investment thesis may be gaining traction.

Snabe met with Greek Prime Minister Antonis Samaras Tuesday to discuss the move. “We will invest in Greece,” the executive was quoted as saying after the meeting, when he indicated that SAP would set up offices in Athens. Snabe was also reported as considering investing in Greek start-ups and funding new companies in Greece, both due to the financial attractiveness of investments in Greece and to help the ailing people of Greece.

So long as the Cyprus issue blows over somewhat smoothly and Greece can continue to not only meet but beat its bailout targets, Greece remains on track to make a miraculous recovery that many just twelve months ago never deemed possible. Should this happen, investing in Greece now, whether through portfolio investments as individuals or through Foreign Direct Investment at the corporate level, could produce massive returns over the long run.

Greece has been plagued by a depression since the financial crisis and then the depression was furthered by its own debt crisis. However, restructuring of the economy appears to be gaining traction as the banks are now healthier and less dependent on short-term funding. The strength of the banks can be seen by Piraeus Bank, a large Greek bank, buying the Greek branches of the two largest Cypriot banks as part of Cyprus' bailout.

Investors should continue to watch Greece to see if more companies make similar moves. Should more companies begin to move into Greece, it would further confirm that Greece is beginning to swing for the better economically and that the investment thesis remains in tact.

 

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