SAP says its Qualtrics unit will go public

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SAP says its Qualtrics unit will go public
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Qualtrics has delivered cloud growth to SAP, but the company's acquisition happened under previous leader Bill McDermott, who is now CEO of ServiceNow.

SAP will be Qualtrics' biggest shareholder and doesn't intend to spin off the holding, according to the statement. The two companies will continue to work together after the initial public offering, SAP said. Qualtrics' leaders, including Founder Ryan Smith, will continue to run Qualtrics.

"We believe that many SAP investors do not fully understand Qualtrics or its vision for the future and this would probably help at least as it relates to better understanding its value," Mark Moerdler and Firoz Valliji of Bernstein Research, who have the equivalent of a buy rating on SAP stock, wrote in a note distributed to clients on Sunday.

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