SAP to acquire cloud-based VMS provider Fieldglass

WALLDORF, GERMANY: SAP AG announced plans to acquire Fieldglass, the technology provider for procuring and managing contingent labor and services. The addition of Fieldglass' cloud-based Vendor Management System (VMS) solution meets the growing demand among employers to manage flexible workforces that can be quickly engaged and on-boarded to support rapidly changing business and customer needs.

Combined with the collaborative, network-based procurement capabilities of Ariba and the human resources expertise of SuccessFactors, the acquisition uniquely positions SAP to deliver a platform for businesses to manage their entire workforce - both temporary and permanent staff - from initial recruiting and on-boarding to ongoing development, performance management, retention and retirement.

The combination of Fieldglass' market-leading VMS solution with SAP promises to transform workforce management by enabling a flexible and comprehensive approach to managing the entire workforce and life cycle, going beyond the traditional focus on the employee record that characterizes many systems today.

Together, SAP and Fieldglass will provide companies with the software, collaboration tools and networks needed to engage permanent and temporary staff out of the gate - and on the fly - in new and innovative ways to ensure they have the right people in the right roles at the right times.

"The acquisition of Fieldglass creates a compelling advantage for SAP customers as they access, attract and manage talent via the networked economy," said Bill McDermott and Jim Hagemann Snabe, co-CEOs and members of the Executive Board of SAP AG.

"This move reaffirms SAP as the undisputed leader of integrated human resources and procurement in the cloud for businesses of all sizes and industries. Combining Fieldglass with SAP is a significant milestone in our strategy to help businesses simplify everything."

"Joining with SAP will allow us to dramatically accelerate our global growth plans and pace of innovation at the unique intersection of the human capital and procurement sectors," said Jai Shekhawat, CEO and co-founder, Fieldglass.

"SAP's innovations in cloud, in-memory and mobile technology are transforming workforce management. We look forward to extending our leadership position, increasing our sales and delivery capacity and introducing our winning strategy to new markets."

The transaction is subject to regulatory and other closing conditions. SAP expects to complete the transaction in the second quarter of 2014.