WALLDORF, Germany, Jan 30 (Reuters) - Germany’s SAP posted 2017 results on the lower side of market expectations after Chief Executive Bill McDermott had promised a “dynamite” final quarter in its cloud business, as Europe’s top technology company announced a $2.4 billion U.S. acquisition.
SAP said it would buy cloud-based sales software company Callidus Software Inc.
This was the first sizable acquisition in 3-1/2 years, McDermott said, adding that SAP did not plan further major M&A and that most of its growth was organically generated.
“We are in no way looking to be in the M&A business at scale,” McDermott said. “This is a tuck-in.”
SAP issued guidance for 2018 that sees total non-IFRS revenues of 24.6 to 25.1 billion euros ($30.43-$31.05 billion), in line with the expectations of 16 analysts polled by Reuters.
It forecast 2018 non-IFRS operating profit of 7.3 to 7.5 billion euros, adding that the implementation of IFRS 15, a new accounting rule on revenue recognition, would add 200 million euros to profits. ($1 = 0.8083 euros) (Reporting by Douglas Busvine and Eric Auchard; Editing by Maria Sheahan)