Amidst rising speculation that SAP could soon experience a takeover, the company's co-CEOs, Jim Hagemann Snabe and Bill McDermott, recently relayed that no such move is in the works and that they are focusing increasing sales in order to remain independent.
“We do things that move the company forward, whether that is organic, through partnerships or joint ventures, or even M&A,” said McDermott during a recent interview with the Financial Times.
SAP, which provides business management software and other technologies, had experienced rough patches in recent years, which led to the ousting of previous CEO Leo Apotheker. Hagemann Snabe and McDermott then entered and vowed to improve the company's market standing and sales. Both now feel that the company has enough of its "swagger" back to avoid a takevoer, the Financial Times relays.
Since their debut as co-CEOs nearly 14 months ago, SAP's price share has jumped by more than a third to $79 billion.
Rumors had been rampant lately that Hewlett-Packard and SAP could be headed toward a merger, especially considering that Apotheker is now the CEO of the former company. Immediately after taking the helm, Apotheker announced HP would begin an increased movement into the software market, an area SAP is obviously familiar with.
However, despite this posturing, McDermott relayed that such a move is not likely.
“We get to the point where we appreciate the compliment that we are a jewel in the crown, but we do have some swagger on our own,” McDermott told the Financial Times.
While the co-CEOs feel strong in their conviction to keep the company's independence, other industry analysts have noted that the leaders must continue to push their beliefs on SAP's founders, who each hold a 24 percent share. Continuing to prove the viability of the company's strategy to remain independent will be an important key for Hagemann Snabe and McDermott moving forward.
Both CEOs have set a goal to increase the company's sales past last year's $12.5 billion mark and reach $20 billion during the next five years. The CEOs hope to achieve this figure by expanding its customer base and moving into the mobile device field. Hagemann Snabe recently relayed that the company will reveal mobile applications at the upcoming Sapphire conference in May.
Hagemann Snabe explained that continuing to delve into new fields and further the company's innovation will ultimately be the key to maintaining its independence.