October 2024

SAP
Industry Overview and Insights
Introduction to SAP

Since the 1970s, SAP has pioneered enterprise resource planning (ERP) products, offering SAP Snapshot
comprehensive solutions for finance operations, HR, and customer relations. The 2015

99 $226.2B $34.3B $15.9B

release of S/4HANA, built on the high-performance SAP HANA platform, marked a
significant advancement, enhancing speed and efficiency with its in-memory data storage.
SAP’s diverse suite includes the business technology platform (BTP) for unifying Of the 100 Largest Market Cap LTM Revenue LTM Cloud Revenue
applications, customer relationship management (CRM) for streamlining interactions, and Global Companies (Q1 2024)(1) (Q1 2024)(1) (Q1 2024)(1)
ERP for mission-critical operations on-premise and in the cloud. Additionally, SAP provides Are SAP Customers
the financial management system (FMS), human capital management (HCM), and supply
chain management (SCM). These offerings ensure business-wide integration and
operational excellence, establishing SAP as a leader in digital transformation.
80% 107,000+ 77% 440,000+
Why We Are Paying Attention Of SAP Customers Employees Of the World’s Customers
SAP’s innovative solutions, such as S/4HANA and the BTP, have become important Are SMEs Transaction Revenue Across 180
drivers of digital transformation for leading organizations. The RISE with SAP program Touches SAP System Countries
has gained significant traction with 6,000 commitments for S/4HANA migration.
However, challenges persist, including a shortage of consultants and many businesses
still relying on ECC. SAP emphasizes the importance of prompt migration and leveraging
BTP capabilities for a smooth transition, demonstrating its commitment to supporting The Experts
businesses throughout their digital transformation journey. Furthermore, SAP’s Key Sources and Additional Reading
advancements in AI, deep integrations, and strong partnerships with tech giants like
Microsoft, Apple, AWS, and NVIDIA are set to redefine how businesses operate. SAP’s
commitment to responsible AI and continuous innovation promises significant
improvements in productivity, efficiency, and sustainability for enterprises worldwide.
Therefore, SAP service partners play a crucial role in helping organizations address
operational and business challenges. Strong M&A activity in the SAP ecosystem for the
past five years has been driven by demand from buyers to expand SAP offerings and Participating Companies
acquire resources to support S/4HANA migrations.
Source: SAP filings.
(1) Converted to USD based on spot/historical FX rate as applicable.

2
SAP Position in the Market

SAP is strongly positioned The global ERP market continues to grow at 12% annually due to increasing demand for Global ERP Software Market Share(1)
in the ERP software market. ERP software from small and middle-market businesses coupled with the growing need for
operational efficiency and transparency. The market can be broken down into enterprise
asset management (EAM), FMSs, HCM, and core manufacturing and operations SAP
The company has been a leader 17%
management submarkets. Workday
in business applications since the
launch of its first ERP system in SAP is well positioned for success within a rapidly growing market offering products and Oracle
solutions across multiple submarkets. In addition to its strength in the ERP software 44% 13%
1972. Today, SAP has over UKG
440,000 customers in more than market, SAP has also built deep expertise within many parallel software markets such as
Sage
180 countries and employs over SCM, CRM, and business process management (BPM).
10% Visma
107,000 people worldwide. SAP
7% Other
offers several ERP solutions for 4% 5%
Enterprise Application Software Market(2)
seemingly every business size and ($ USD in Billions)
every industry type.
6.9%
$292.0 $312.8 $333.4 $354.8
$271.8
($ USD in Billions)
2023–2027
Vendor Revenue 2022
CAGR
2023A 2024E 2025E 2026E 2027E
SAP $7.4
Workday $5.5
Global ERP Software Market(2) Oracle $4.6
($ USD in Billions)
$48.6 $54.5 $61.1 $68.4 $76.5
12.0% UKG
Sage
$3.3
$2.2
2023–2027
CAGR Visma $1.6
2023A 2024E 2025E 2026E 2027E
Source: SAP website. Other $19.1
(1) Gartner.
(2) Statista. Total $43.8

3
The Global Economy Runs on SAP
SAP Customers

SAP continues to lead the market with an unparalleled growth outlook

and an innovative partner network.
Professional Services
Ecosystem
$670B
Total Addressable Market (2025E)

ERP and Supply

Chain

Procurement $525B HCM SAP Solutions

TAM 2025
SAP is a global market leader in enterprise application software, supporting companies of
all sizes and industries with an end-to-end suite of applications and services. Recently, SAP
BTP CRM
New invested in shifting its predominantly on-premise products toward cloud-based ones. SAP
Markets service partners share SAP’s vision, investing in tools to accelerate enterprises’ migration to
the cloud with mitigated risk.

BTP

$71B $17B
ERP
$35B $14B $8B
TAM 2025 TAM 2025 TAM 2025 TAM 2025 TAM 2025 HCM
CRM
Industry Cloud Business Process Business Network Sovereign Clouds Sustainability
FMS
Intelligence
SCM
Source: SAP Financial Analyst Conference Presentation.

4
SAP Product History and Evolution

1970s 1980s 1990s 2000s 2010s Now

The Early Years The SAP R/2 Era The SAP R/3 Era The E-Business Era The Digital Economy Era The AI Era

• 1972—SAP is founded on • 1980—Disk-based relational • 1992—SAP R/3 releases, • 2001—SAP adds enterprise • 2011—SAP acquires Ariba, • 2021—RISE, a single offering
the philosophy of real-time databases architecture enabling SAP to be used by portals to its solution aiming to become the leader that provides a path to the
business. emerges. enterprises for the first time. portfolio by acquiring in B2B e-commerce. Intelligent Enterprise for
• 1973—Relational Model1 • 1986—Exhibit at CeBIT for • 1993—SAP starts working TopTier. • 2015—SAP S/4HANA is every customer, is released.
(R/1) is released to help the first time. with Microsoft to port SAP • 2004—SAP ECC 5.0 released. released. • 2023—S/4HANA Cloud
serve data management. • 1987—SAP begins R/3 to the Windows NT • 2006—SAP generates • 2016—Apple and SAP addition is announced.
• 1979—R/2 is released, developing a new operating system. around 30% of its €3.1 billion announce a partnership to • 2023—SAP Datasphere, a
providing mainframe-based, multiplatform-enabled • 1999—MySAP.com total software license combine powerful native comprehensive data service
real-time data processing. generation of software: R/3. combines e-commerce revenue from companies apps for iPhone and iPad built on SAP BTP, is released.
solutions with SAP’s ERP with fewer than 2,500 with the SAP HANA platform. • 2023—SAP Joule, a natural-
applications. employees. • 2018—SAP C/4HANA language, generative AI
launches. copilot, is announced.

<50 Customers ~2,200 Customers ~15,000 Customers ~41,000 Customers 100,000+ Customers 215,000+ Customers

Supported by Accretive Inorganic Growth

Sources: SAP website, PitchBook.

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 SAP Product Snapshot

Tailored Solutions Designed to Elevate Businesses SAP Programs

Ready-to-Go Cloud ERP With Industry-Leading Solutions

1 RISE with SAP is a comprehensive offering tailored
for large and upper-middle-market businesses,

RISE With SAP

9 S4/HANA 2 transcending traditional technology solutions. It is
Business designed to empower businesses to navigate digital
Maximize Asset Health and Performance With Enterprise Planning Cloud-Based Solution Across Supply transformation seamlessly and elevate their
SAP Intelligent Asset Management Solutions Asset Mgmt. Supply Chain Functions operations to new heights. This offering includes a
Chain
set of bundled products at a single price, all under
8 3
one contract with SAP.
Manage Sourcing and Suppliers Integrates Third-Party Solutions and
Ariba BTP
With a Single Connected Suite Extends Application Capabilities

GROW with SAP is an offering based on the

7 4

GROW With SAP

principles of RISE with SAP, tailored specifically for
Integrates Digital and Physical Commerce Concur Integrates Travel Spend, ERP, small- and medium-sized businesses seeking to
Customer Touch Points Clouds Expense Accounting, and Card Data drive growth. It enables businesses to unlock new
6 5 opportunities, foster innovation, and enhance
customer experiences. GROW with SAP aligns
Success Build
System of Record for Employees, Manages HR- Factors Solutions Low-Code SAP Solutions to Help
technology with strategic goals, allowing
Related Data, and Streamlines Core HR Process Accelerate Development organizations to scale their operations effectively.

The shift toward cloud-based subscriptions ensures predictable revenue streams and scalability, bolstering financial stability and potential margins. By embedding cloud
analytics across offerings like S/4HANA Cloud and the SAP BTP, SAP enhances operational efficiency and decision-making for businesses. This strategic alignment with market
trends and technological advancements not only drives innovation but also supports widespread customer adoption, underpinning long-term growth prospects and investor
confidence in SAP’s future.
Source: SAP website.

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 SAP Is a Leader in Cloud Database, ERP, and Data Integration Services
Cloud Database Management Systems (DBMSs) Cloud ERP for Product-Centric Enterprises
Challengers Leaders
• Cloud DBMSs manage data within an Challengers Leaders
• Cloud ERPs integrate business processes
organization on the cloud rather than on on the cloud, streamlining core activities
a local server. of product-centric enterprises such as
manufacturing, inventory management,
• SAP offers numerous solutions, including
sales, and procurement.
HANA Cloud, Data Warehouse Cloud,
Adaptive Server Enterprise, IQ, and SQL • SAP S/4HANA Cloud offers smooth
Anywhere. integration of business processes with
core capabilities in Operational ERP and
Ability to Execute

Ability to Execute
• SAP HANA Cloud supports both
financial management functionality.
transactional and analytical workloads in
one solution.
Niche Players Visionaries Niche Players Visionaries
Completeness of Vision Completeness of Vision

Cloud ERP for Service-Centric Enterprises Data Integration Tools

Challengers Leaders
• Cloud ERPs offer FMS functionality, Challengers Leaders
• Data integration tools comprise
order-to-cash (O2C), procure-to-pay, architectural methodologies that yield
and HCM. organizations’ consistent access to data
across disparate sources.
• By 2026, 40% of organizations in service-
centric industries are expected to • Simplified data migration and enterprise
consolidate their core solutions in a business workflows boost productivity.
single ERP suite.
• SAP delivers comprehensive end-to-end
Ability to Execute

Ability to Execute
• SAP S/4HANA has extensive in-house data integration solutions, allowing
capabilities for financial management, organizations to construct and
O2C, HR, and procurement applications. accomplish powerful workflows.
Niche Players Visionaries Niche Players Visionaries
Completeness of Vision Completeness of Vision

Source: Gartner 2023.

7
Current SAP Product Trends
SAP’s 2024 Top HR Trends Cloud Tailwinds Impacting SAP Products Leveraging the
SAP
SAP Solutions(1) Next Wave of Analytics
• Enhancing HR Operations: Simplifying and innovating Cloud Analytics(3)
HCM processes with SAP SuccessFactors extensions $3.8B $14.8B ($ USD in Billions)
boost productivity and efficiency. 2023 S/4HANA Cloud Revenue Current Cloud Backlog
$139.5
• Streamlining HR Processes: Organizations are adopting $113.3
software-based solutions to streamline HR operations, $92.0
reduce costs, and effectively achieve business goals. $74.7
$60.7
~45% ~60% ~50% $49.3
• Optimizing Workforce Performance: Leveraging of SAP customers of S/4HANA of supply chain $40.1
technology in HR functions is crucial for optimizing $26.4 $32.5
use multiple cloud migrations organizations
talent management and driving high performance in solutions. are estimated to will invest in
workforce optimization. have started.(1) advanced analytics
capabilities by 2022A 2023A 2024E 2025E 2026E 2027E 2028E 2029E 2030E
2024.(2)
1 2 3 • Unified Innovation Platform: SAP BTP integrates
application development, data analytics, AI, and
As AI becomes As data-driven Organizations Cloud Revenue(1) automation, providing real-time data insights to drive
increasingly decision-making transition back
($ USD in Billions) operational agility. and strategic planning.
integrated into becomes to in-person
• Predictive and Personalized Capabilities: SAP
everyday increasingly work; the return $4.0 $4.3
workflows, important, of employees to $3.6 $3.8 products leverage predictive analytics and machine
$3.4
employees will analytical skills the office marks learning to forecast trends and mitigate risks, while SAP
begin to will move to the a significant BTP personalizes user experiences and supports
recognize it as forefront of HR shift. intelligent, end-to-end processes. SAP BTP ensures
a valuable tool. practices. reliability and compliance in a secure cloud environment,
integrating seamlessly with SAP and third-party
applications.
Q1 23 Q2 23 Q3 23 Q4 23 Q1 24

(1) SAP Filings: Avg. Quarterly Currency Exchange Rate, Gartner, S&P Capital IQ, SAP website.
(2) Deloitte: S4HANA & Supply Chain.
(3) Precedence Research: Cloud Analytics

8
SAP’s Technological and Cloud Shift

SAP’s Cloud Growth(1) Tailwinds Driving Demand(1)

+$17B +28% 85/100 ~85% SAP’s Shift From SAP ECC to S/4HANA
Estimated Cloud S/4HANA Backlog YoY World’s Largest Companies Customers Remain • Currently, ~35,000 customers use SAP ECC solutions, from which
Revenue (FY 2024) Growth (Q1 2024) Are S/4HANA Customers on Legacy ECC ~15% have completed migrations to S/4HANA.
• As SAP plans to end maintenance services for SAP ECC in 2027, there

$8.5B are ~30,000 customers that still need to convert to S/4HANA.

In Market Opportunities • According to IDC, ~77% of SAP customers will rely on a partner to
The SAP S/4HANA application perform its S/4HANA migration.
market is valued at $25.3
billion, growing at a 26.4% • It is estimated that ~60% of S/4HANA migrations have started but
CAGR from 2022 to 2030. remain in the service providers’ backlog.

Top Drivers for SAP Customers to Migrate to S/4HANA

2027
ECC Sunset
The opportunity to reengineer processes to better
45% fit operational needs or correct poor processes/
configurations from a previous ERP implementation.

2022
2022 2030
2030 42% End of maintenance and support for core SAP
ERP releases.

The pending S/4HANA migration will lead to additional revenue opportunities from increasing
cross-sell activity across SAP’s diverse and evolving solutions.

(1) Société Générale Cross Asset Research; SAP to 2024 and beyond, Verified Market Research.
31% A business mandate to better support business users
with innovative solutions.

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SAP HCM SAP SuccessFactors
Employee Central Payroll
SAP SuccessFactors Employee Central
Payroll is a cloud-based system that
simplifies global payroll processes, ensuring
SAP HR Analytics SAP HR and ERP accurate and timely payments while
Provides actionable insights into workforce Real-time visibility and connectivity
trends and improves decision-making for optimizing workforce management
reducing errors. It integrates seamlessly
workplace challenges. across businesses. with core HR functions, talent management,
and analytics, building employee trust and
offering localization for more than 50
locales. The platform enhances user
experience with consistent processes across
HR, payroll, and benefits management, and
Core HR Payroll SAP AI for HR
Manage the workforce with Transform the workplace by
its continuous payroll functionality
HR time, payroll, and service enhancing recruiting, training, addresses issues before payday. Supporting
delivery solution. employee engagement, and flexible deployment options, it offers
retention. scalability and configurability and meets
global compliance needs, delivering
extensibility, cost savings, and cloud agility.

HCM Product Solutions Notable HR SAP Service Consultancies

AI Trends in HR
In 2024, AI stands at the forefront of HR trends, revolutionizing workforce productivity and management. Generative AI enhances rather
than replaces jobs, emphasizing collaboration and skill development. Self-serve AI tools like copilots boost daily efficiency but demand
careful oversight to prevent misuse. Concerns around data privacy and ethics persist, shaping the adoption of transparent and fair AI
practices. HR focuses on AI-driven improvements in recruitment, talent management, and employee well-being, underscoring its role in
steering AI strategy and fostering an adaptive organizational culture.

10
Global Payroll Excellence: SAP’s Competitive Edge in HR Solutions

ECP System Architecture

Global and Innovative
SAP Payroll is distinguished as a truly global solution, offering extensive localization across
numerous countries, allowing multinational organizations to manage their payroll operations
in compliance with local regulations. The latest Payroll Control Center (PCC) functionality Production
provides extensive business processes, payroll audits, and user interface upgrades. Payroll System

Customer Employees
Competitive Edge
SAP Payroll excels in the competitive HR/payroll landscape by providing superior integration Quality Assurance
capabilities, including the ability for partners to seamlessly interface with non-SAP HR systems.
Payroll System
Furthermore, SAP and select payroll services partners have been making payroll deployments
more accessible for smaller organizations.
HR Admins

Migration Trends Development

Payroll System
Transitioning to Employee Central Payroll (ECP) is a notable trend in the payroll landscape. As
SAP phases out on-premises licenses, organizations are moving to ECP, which provides a 3 System ECP Landscape
cloud-based, scalable solution aligned with modern business needs. Clients with a non-SAP Payroll Admin
HR core may migrate to SAP Payroll running on S/4 HANA Private Cloud Edition (PCE).

Notable Payroll Solutions Partners

* *

* *

*Please see more company details on pages 21–34.

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Accelerating Digital Innovation on RISE With SAP

RISE Starts With S4/HANA Business Transformation as a Service

• RISE initiatives start with SAP S/4HANA Cloud (private or public), protecting ERP
investments while offering innovation and flexibility. The program optimizes
SAP S/4HANA (Public
processes, extends capabilities, and promotes sustainability. SAP encourages clients
to adopt a full suite of tools, including generative AI, which is available in the cloud or Private Cloud)
version, driving the shift to hybrid and cloud solutions.

SAP Business SAP Business

Comprehensive Support for Cloud Migration
Network Process Intelligence,
• Launched in January 2021, RISE with SAP aids customers in their cloud migration Starter Pack Discovery Reports
and digital transformation journeys. With S/4HANA Cloud and the SAP BTP at its RUN PLAN
core, it is offered for a single subscription price. The program addresses the
financial and operational challenges of moving to the cloud through readiness
assessment services and advisory support from service partners.

Managed Cloud Services—Value for SAP Partners

• RISE with SAP has been adopted by more than 6,000 customers and offers
SAP BTP
BUILD Custom Code
significant opportunities for SAP channel partners who can sell RISE as a packaged
solution, provide system implementation and migration services, and offer Migration App,
managed services to support operations. This includes using proprietary migration Readiness Check,
technology, accelerators, and methodologies, making it an important focus area On Infrastructure Learning Hub
for service partners. Provider of Choice

Source: SAP website.

12
 SAP’s Partner Ecosystem

SAP Customers SAP Customers

Professional Professional
Services Services
Ecosystem Ecosystem

SAP Partner Value Customers

SAP partners collaborate with SAP to provide various 440,000+ SAP customers, including 99 of the 100 largest
services, solutions, and expertise to SAP customers. global companies. Recently, enterprise expectations
Partners undergo a rigorous certification process and work have evolved from traditional ERP modernizations to
closely with SAP to maintain best practices. In a recent industry-focused solutions tailored to customer and
survey, 93% of SAP partners expect accelerated growth in employee experiences. SAP and service providers are
SAP-related revenue with healthy margins (2023 gross working together to address the increasing demand for
margin was ~72.2%).(1) client-centric solutions, contributing to a vibrant
ecosystem of applications and services.

SAP Software
Partners Make
SAP Services
Partners Make $10.01
in Economic Value
For Every $8.81
in Economic Value
$1
of SAP Revenue

(1) IDC, SAP Filings.

13
What Determines Levels of SAP Service Partners

The Role of SAP Partners PartnerEdge is SAP’s partner program that provides resources, benefits, and support to help partners effectively sell, service, and build solutions on SAP
technology. Through the program, partners can access SAP software, documentation, and training materials to become experts in SAP solutions. This
program currently includes more than 24,000 partner companies worldwide across different partnership types, including service partners that provide
Becoming an SAP partner creates a
consulting and implementation services for SAP solutions.
multitude of opportunities for
businesses looking to expand their Within these partnership types, partners are assigned one of three levels: Platinum, Gold, or Silver. Depending on their levels, partners may receive
reach, enhance their offerings, and training, marketing and sales support, and other benefits to help them build their expertise and reputation as trusted SAP advisors.
tap into a thriving ecosystem. SAP
provides innovative software
What Determines Partner Status? Platinum
solutions that help organizations
streamline their operations, manage
Have 20 endorsed individuals pass SAP certifications, 10 customer
data effectively, and drive growth.
1 references annually, and $15 million in revenue related to SAP
products and services. SAP will actively promote Platinum
Qualifications partners and help drive new business to them.

SAP partners play an essential role Employee

in the enterprise software Certifications
ecosystem. Every level of SAP Gold
partnership brings forth its unique
blend of skills and proficiency to
provide clients the solutions they
2 3 Have 10 endorsed individuals pass SAP certifications, five
customer references annually, and $750,000 in revenue related to
SAP. As a Gold partner, SAP will co-invest in generating new
need and serve as their trustworthy Customer SAP Revenue business opportunities.
Success Results Through
advisor both for the present and
their imminent future. Results Through Top-Line Growth
Customer
Satisfaction Silver
Have two endorsed individuals pass SAP certifications and at least
one customer reference annually. Silver partners get primary
access to SAP resources like documentation, software downloads,
Sources: MegaTechVerse “Levels of SAP Certification Partners,” HealthyFlat. and discount licenses for internal use.

14
 SAP Partner Ecosystem
Illustrative snapshot of partners categorized by status.
1,500+ Partners (40+ Shown) 70+ Partners (30+ Shown) 900+ Partners (60+ Shown) 60+ Partners (30+ Shown)

100,000

10,000
Est. Scale (Total Employees)

Please Contact
Leroy Davis (Leroy.Davis@HL.com),
2,000
Malte Abrams (Malte.Abrams@HL.com),
R.B. McCutcheon (RMcCutcheon@HL.com), or
Ilia Ulianchuk (Ilia.Ulianchuk@HL.com) for Page Details
500

100

Basic Member(1) Silver Gold Platinum

(1) Partner has a history of working with SAP as a basic member in the SAP PartnerEdge open *Denotes PE-backed.
15 ecosystem but has not received a formal designation of Silver, Gold, or Platinum. Global strategic services partners.
SAP Sapphire 2024 Conference Recap

Houlihan Lokey recently attended Top Takeaways From Sapphire

the 2024 SAP Sapphire Conference,
where we engaged with numerous Joule and Generative AI Integration Across SAP Ecosystem
strategic parties interested in the SAP has introduced Joule, a generative AI assistant, to be embedded across the entire SAP cloud solutions portfolio, including S/4HANA,
SAP space. Our interactions
provided valuable insights into
1 SuccessFactors, Ariba, and Concur. By the end of 2024, 80% of the most commonly executed tasks will be manageable via Joule. This AI-driven
approach aims to enhance productivity by 20% and streamline task management. Additionally, SAP’s collaboration with NVIDIA and Microsoft Co-
Pilot reflects a significant move toward leveraging generative AI to optimize business processes and decision-making.
partner and buyer preferences, as
well as SAP’s future initiatives. In
our view, these are four critical Continuing Adoption of RISE With SAP Program Initiative
takeaways from the conference that SAP’s RISE with SAP program continues to be a cornerstone for cloud transformation, with a strong emphasis on maintaining a “clean core” for
could significantly influence the IT
services landscape moving forward. 2 innovation-ready systems. The next evolution of RISE includes dedicated SAP Enterprise Architects, BPM via Signavio, and SAP Cloud ALM. This
initiative aims to simplify business models, reduce customizations, and ensure seamless integration of SAP and non-SAP applications, thereby
promoting agility and operational efficiency.

SAP BTP as the Foundation for Innovation

While other applications and solutions were highlighted, the SAP BTP played a crucial role behind the scenes. Several announcements showcased

R.B. McCutcheon Ilia Ulianchuk 3 solutions powered by SAP BTP, such as SAP Spend Control Tower and the embedding of Joule in SAP Analytics Cloud. The platform will serve as the
backbone for building, integrating, and extending SAP solutions, emphasizing its maturity and significance. With SAP BTP, businesses can leverage a
unified platform for application development, data integration, advanced analytics, and more.
Director Vice President
Atlanta Charlotte
RMcCutcheon@HL.com Ilia.Ulianchuk@HL.com

Industry Solutions in the Cloud

Industry-specific functionality remains a critical concern for businesses considering cloud migration. There are some industry solutions, particularly

4 in sectors like the public sector, that face challenges in becoming RISE-compatible. This gap in cloud readiness underscores the necessity for SAP
partners to actively build out industry-specific functionalities within the SAP BTP. While AI innovations often dominate the conversation, the
availability and reliability of industry solutions in the cloud are equally crucial for customers evaluating RISE and cloud adoption strategies.

16
SAP Services M&A Drivers
SAP’s Shift From ECC and Growth Opportunities to S/4HANA
With ~15% of SAP ECC customers already migrated to S/4HANA, the urgency mounts as around 30,000 customers await conversion before SAP ends maintenance
support for ECC in 2027. This expansion presents numerous opportunities for SAP to cross-sell and bundle its cloud offerings as customers begin transitioning.

Unlocking Cross-Sell Potential in SAP’s Cloud Ecosystem

SAP’s partner ecosystem capitalizes on cross-selling, driven by nearly half of SAP Cloud customers adopting multiple solutions, with attachment and
cross-sell rates rising via initiatives like RISE with SAP. The Land & Expand strategy with the Cloud ERP Suite and cross-selling the LoB Portfolio
strengthen ecosystem growth, aided by BTP integration and expanded commercial models.

SAP’s ML and AI Revolution

SAP’s partnership with NVIDIA will accelerate the adoption of generative AI across its cloud solutions. The collaboration aims to integrate
generative AI into SAP’s cloud offerings, including SAP BTP, RISE, their new Copilot Joule, and more, enabling advanced AI capabilities for
customers.

SAP Talent and Capabilities Expansion

SAP’s global network of more than 24,000 partners fosters innovation through strategic acquisitions and technology collaborations. Heightened
interest and M&A activity from numerous buyers seeking fully scaled SAP assets with sizable delivery teams are generating scarcity within the
ecosystem.

Vertical Diversification and SAP Accelerators

Customers expect increasingly tailored solutions, driving service providers to combine vertical-relevant capabilities such as IaaS, PaaS, SaaS, and cloud ERP into a
cohesive solution. Industry clouds are composable, adapting and innovating to specific industry requisites. In addition, proprietary accelerators help companies
with faster migration and implementation of SAP solutions.
Sources: S&P Capital IQ, PitchBook, press releases.

17
Market Dynamics Across the SAP Ecosystem

The SAP market has seen a steady Investments by Target Region (Past Five Years) Historical Buyer Mix (Past Two Years)
level of M&A activity. With the
continuing momentum of the
S/4HANA migration trend, strategic
buyers are actively looking for
acquisitions to expand their 62% Europe
product offerings and remain 27% North 51%
competitive in the ever-evolving America Strategic vs.
enterprise applications sector. PE Buyers
Global PE groups are looking to 8% APAC
capitalize on this trend and support 3% LATAM
the growth of leading SAP partners.

Houlihan Lokey’s team recently

conducted a broad survey across M&A Buyer Technology Focus—Enterprise Applications
90+ strategic buyers to gain
insights into their 2024 M&A 33.8% 33.8%
priorities. SAP is listed as one of the
27.5% 49%
highly desired enterprise Add-Ons vs.
application technologies by many Platforms
buyers. Please contact Houlihan
Lokey’s IT Services M&A team for 11.3%
more details regarding this survey. 7.5%

18 Sources: S&P Capital IQ, PitchBook, proprietary Houlihan Lokey information.

Market Dynamics Across the SAP Ecosystem (cont.)

Most Active Strategic Firms Commentary

The strategic firms listed have recently shown a
strong interest in SAP assets. These well-
established players aim to bolster their
presence in the SAP market by capturing
additional market share and expanding into
new capabilities and verticals.

The robust utility and quality of SAP make it an

attractive and stable platform for these
partners. Consequently, PE groups are
emerging as potential key buyers, recognizing
Most Active PE-Backed Strategic Firms the growth potential. Actively seeking new
investment opportunities, they are exploring
strategies to swiftly expand their existing
platforms and capitalize on SAP’s sustained
growth.
Jul 2024 Apr 2024 Feb 2024 Sep 2023 Nov 2022
The appeal of SAP assets lies not only in their
potential for growth but also in their scarcity.
Jun 2022 May 2022 May 2022 Dec 2021 Dec 2021 As highly sought-after assets, SAP partners are
attracting significant attention from strategic
and PE buyers alike.
Oct 2021 May 2021 Jan 2021 Dec 2020 Nov 2020

Nov 2020 Jan 2020 Sep 2019 Jul 2017 Jun 2017

19 Sources: S&P Capital IQ, PitchBook.

SAP Services Ecosystem Garners Interest From Strategic Buyers

Recent Strategic Transactions

Sep 2024 Aug 2024

“Now’s the time to step up and speed up business “We are in the midst of one of largest tech and data
transformation in the cloud. SAP S/4HANA plus SAP migrations for the next 3-5 years as clients transition
Business Technology Platform is a powerful combination from ECC to S4. Proud to expand our partnership Jan 2024 Nov 2023
for achieving elevated enterprise performance.” with SAP and bring our joint vision, talent, tech and
creativity to bear for our clients.”
Caspar Borggreve
Global SAP Business Group Lead at Accenture Rob Vatter
Oct 2023 Feb 2023
EVP of Enterprise Platforms and Applications at
Cognizant

Dec 2022 Dec 2022

“Our SAP Studio remains singularly focused on helping “We have a rich understanding of the strategic need
our clients access the unique business AI capabilities, for rapid and efficient change. By taking a business-
customized services, and out-of-the-box accelerators centered approach to SAP technology
Aug 2022 May 2022
from SAP that will help them reach new levels of transformation, we can help enable businesses
performance and efficiency in their business.” to meet the future with confidence.”

Diego Tartara Carl Carande

Global Chief Technology Officer at Globant Vice Chair of Advisory at KPMG Feb 2022 Oct 2021

20 Sources: S&P Capital IQ, PitchBook, press releases.

Company Spotlight: All for One
Business Overview

Business Description Technology Partners

The All for One Group (All for One) is a leading international IT, consulting, and service provider for all
aspects of SAP. As the No. 1 SAP partner worldwide in SAP transformations in SMEs and the SAP cloud
business, the company supports its customers—including global players, hidden champions, and world
market leaders—in their corporate transformation. All for One’s ~3,000 experts use RISE and GROW with
SAP as a digital platform and integrated, AI-supported cloud solutions to digitize business processes and
automate processes. Leveraging its many years of SME experience, SAP expertise, and process know-how,
All for One is trusted by more than 3,500 medium-sized customers throughout Europe and across industries
including engineering, automotive, life sciences, wholesale, and professional services, among others.

Relevant Information Solution Portfolio

Founded: 1959 Other Locations: 30+, Mainly in Europe
Employee Base: ~3,000 Status: Publicly Traded
Headquarters: Filderstadt, Germany Industries: Mechanical Engineering, Automotive Cybersecurity and HR and Product Supply Chain CX and Finance and
Supply, Life Sciences, Wholesale, Professional Services Compliance Employee and Data Manufacturing Marketing Controlling
Experience
Notable Clients Recent Awards Geographical Footprint
In February 2024, All for One was awarded the Headquarters Filderstadt Warsaw
SAP MEE Award for Partner Excellence in two Branches +26 Other Offices
+5 Other Offices in
categories: Cloud Delivery and Customer Value. in Germany
Poland

Vienna
Brussels +2 Other Offices
in Austria
Luxembourg

St. Gallen
+2 Other Offices Istanbul
in Switzerland

Alexandria

21
Company Spotlight: All for One
Q&A
Q: What are your thoughts on the RISE with SAP program and how SAP can ensure its success?
A: We believe that RISE with SAP is the right approach for combining the transformation to SAP S/4HANA with a cloud
Michael Zitz transformation. It is well established that the cloud is the basis for continuous innovation, particularly seen in fields like AI.
Co-Chief Executive Officer However, the challenge is if SAP delivers a constant stream of innovations, but companies cannot turn them into benefits for
their specific business, nothing is gained. As a SAP partner, we must provide good support through our services and
Michael Zitz holds more than a decade of leadership experience driving growth through consulting, such as our RISE ONE offering.
innovative, customer-centric strategies. He has a strong track record in developing long-
term partnerships and delivering impactful results across various roles in the enterprise Q: Do you think SAP customers will have to fully go “cloud” with S/4HANA or pursue more of a hybrid approach due
technology sector. to the complexity and size of SAP projects?
A: The reality for many of our “Mittelstand” customers is that they cannot immediately move all of their systems to the cloud.
We usually advise our customers that the cloud is the final goal, but the path to get there is via a hybrid approach, especially
Q: Tell us about All for One and what sets your firm apart from competitors in the SAP ecosystem. What is your because they have many different applications that must be integrated and managed. However, despite many of our
unique value proposition? customers being “Mittelstand” companies, we are the most successful SAP partner for cloud solutions in Central Europe. This
demonstrates that the cloud has fully arrived in the middle market.
A: The All for One Group is a leading international IT, consulting, and service provider for all aspects of SAP. As the No. 1 SAP
partner worldwide in SAP transformations in SMEs and SAP cloud business, the industry specialist supports its customers—
including global players, hidden champions, and world market leaders—in their corporate transformation. Q: What are your thoughts on industry-focused solutions within the SAP products? Does industry focus provide a
In FY2022/23, All for One generated sales of EUR 488 million with its team of almost 3,000 employees. These experts use competitive advantage when engaging with potential clients?
RISE and GROW with SAP, among other digital platforms, as well as integrated, AI-supported cloud solutions to digitize A: Absolutely! Industry-specific characteristics and processes are relevant. We see our position as an industry specialist
business processes, automate workflows, and rethink services. The combination of many years of SME experience, SAP coupled with strong references and brands in our core industries as a competitive advantage in client acquisition. We also
expertise, and industry and process know-how is trusted by more than 3,500 medium-sized customers from Germany, consciously leverage our industry focus in marketing and communications. For example, November 7 is our Insight Day for
Austria, Poland, and Switzerland. The core industries of All for One are mechanical and plant engineering, the automotive mechanical and plant engineering in Augsburg, and this year, we will have our customer HORSCH Maschinen GmbH talk
supply industry, life sciences, wholesale, and professional services. about its SAP transformation and provide insight into HORSCH’s AI activities.
Turning technology into business success—that sums it up. The greatest possible business benefit is the top priority; our
outcome must always be a business driver. Technology is only a means to an end. We ensure that our customers exploit the Q: What is your vision for the future of your firm and its role in the evolving digital landscape?
immense digital possibilities and thus increase their competitiveness in the long term. A: As a consulting and service provider, we are a relevant partner for our customers in all aspects of digitalization, automation,
and AI.
Q: What are your thoughts on the current migration trends of SAP ECC to SAP S/4HANA? How do you help your
clients with migrations, and what differentiated solutions/products do you offer today to help accelerate the shift? Q: How do you stay up to date with the latest trends and technologies, and how do you incorporate them into your
A: We consider transformation an opportunity, for both our customers and All for One. We offer a “conversion factory,” a client solutions?
semi-automated approach that enables rapid shifts and migrations. However, this purely technical shift to a new ERP A: We closely monitor market and manufacturer trends, regulations, and developments. Then, we combine these insights with
generation is not the true issue for our customers. Instead, they ask: How can I use the SAP S/4HANA migration to advance our customers’ requirements to generate our consulting and proactive service offerings.
my digitalization and benefit from future innovations? Our CONVERSION/4 offering provides the answer to this question. In
the first phase, we identify the possible benefits so the customers can truly experience the advantages in their daily business,
rather than just having new software. We have been very successful with this approach, completing more SAP S/4HANA
conversions than any other SAP partner worldwide.

22
Company Spotlight: Cognitus
Business Overview

Business Description Technology Partners

Cognitus is a software and services company that provides AI-powered contract lifecycle management,
contract compliance, and billing software to clients in regulated industries (i.e., companies dealing with
federal, state, and local government). Cognitus is a co-innovation partner of SAP, and Cognitus software is
endorsed by SAP (meaning SAP resells Cognitus software). Cognitus is also an SAP Gold Partner specializing
in the implementation, deployment, and support of SAP solutions. The company offers various services,
including SAP S/4HANA integration, RISE with SAP, cloud solutions, application management, and end-to-
end digital transformation across 11+ industries.

Relevant Information Capabilities

Founded: 2002 Other Locations: 18+ Offices Worldwide
Employee Base: 1,000+ Status: Privately Held (Minority Investment From
Headquarters: Dallas, Texas Haven Capital Partners) ERP SAP Digital BTP Finance and Customer Spend
Supply Chain Analytics Excellence Management

Notable Industries Recent Awards and Recognitions Optimization Post Implementation

SAP North America Award for Partner Cognitus’ 24/7 service desk, coupled with process
Excellence 2024 for Highest Cloud Revenue monitoring and improvement mechanisms, ensures timely
and Net New Names issue resolution, often preempting business impact.
Aerospace and Professional Manufacturing Wholesale Cognitus’ offshore, nearshore, and onshore global delivery
Defense Services Distribution models are focused on value delivery and optimize
customers’ SAP environments in compliance with global
regulations for continuous support.

Automotive CPG Mining Public Sector

23
Company Spotlight: Cognitus
Q&A
Q: Which current suite of SAP products have you seen create the most business impact for your customers? Examples
include Rise with SAP, SAP BTP, SuccessFactors for HCM, and S/4HANA.
Amit Baid A: We have seen RISE with SAP have the most impact on our customers. RISE with SAP’s highly customizable approach to
President and CFO digital transformation has allowed our customers to adopt a scalable business model as they move towards Intelligent
Enterprise. Combining business process intelligence with our rapid implementation model and data migration tools has made
Amit Baid holds an MBA in Finance and Entrepreneurship from The Wharton School and
the transition seamless by consolidating various aspects of digital transformation into a single subscription-based service and
an Engineering degree in Electronics and Communications from NIT. With more than 25 reducing the total cost of ownership.
years of experience, he has a proven track record as both a founder and investor. Mr. Baid
SAP BTP has also been a huge value-add to our clients. Our offerings, such as the CIS-GovCon suite designed for regulated
has founded two software companies: Tradefin (exited to Coupa software) and Moengage industries to meet compliance requirements, leverage the SAP BTP to incorporate the latest innovations. By integrating these
(Series E-funded, venture-backed company). He is an investor and operator at Cognitus. with BTP products like SAP Integration Suite, SAP Extension Suite, and SAP Analytics Cloud, we extend SAP’s environment for
our customers to deliver tangible benefits. These benefits include streamlining key processes to boost revenue, enhancing
Q: Tell us about Cognitus and what sets your company apart from competitors in the enterprise cloud universe. What compliance, and improving data security. This approach continues to enable our customers to rapidly adapt to changing
is your unique value proposition? market conditions and swiftly respond to new opportunities and challenges.
A: There are three things that set Cognitus apart from competition:
Q: What is your vision for the future of your business and its role in the evolving digital landscape, particularly in
1. Industry Focus: Dedicated to helping businesses in highly regulated industries such as aerospace and defense (e.g., relation to SAP?
Lockheed, Amazon Kuiper, Vertex, Thales, DMT, Boom Supersonic), industrial manufacturing (e.g., Eaton), and
professional services/software services (e.g., DAI) achieve their goals on time, on budget, and in scope. A: Our vision is to become the No. 1 player in regulated industries for SAP software and services. Until recently, we were not
even on the map. Today, we are the fastest-growing player. We plan to continue investing in software that fills critical gaps in
2. Dedicated Software Solutions: SAP’s ERP for regulated industries and use our software differentiation to win both software and services clients. We believe
• LambdaX: AI-based contract lifecycle management and compliance software for regulated industries. we have a multi-year tailwind behind us.
• Real-Time Billing: Accelerates high-volume transactional billing up to 60x faster than SAP resource-related billing.
• CIS-AM: Simplifies complex asset maintenance and streamlines MRO services. Q: Can you share a success story where your consultancy made a significant impact on a client’s business?
• GovCon Solutions: Endorsed by SAP (less than 1% of SAP App Store applications are endorsed), available on a
A: Cognitus’ partnership with Lockheed Martin, a prominent defense contractor that supplies military equipment globally, has
subscription basis.
been instrumental in helping the company streamline its operations and enhance its compliance with defense acquisition
3. Certified Expertise for SAP S/4HANA Implementation: SAP Gold Partner, certified GROW with SAP partner, and SAP’s go- processes. Lockheed Martin relies on SAP to ensure compliance, and Cognitus plays a pivotal role in addressing government
to partner for regulated industries. regulations within the SAP environment, particularly in the SAP S/4HANA system.
Cognitus provides the customer with specific solutions such as CIS-GovCon for contract compliance, LambdaX for contract
Q: How do you measure the success of your consultancy, both in terms of client outcomes and the growth of your lifecycle management, Real-Time Billing for real-time financial visibility, and Alchemy for data migration. In addition, Cognitus
own business? addresses government contract gaps in SAP S/4HANA using its CIS-GovCon solution and provides custom development when
A: We measure client success on two metrics: 1) adoption of our software solution (how many users are using it and the needed to facilitate the transition from ECC to S/4HANA. One of the remarkable outcomes of the partnership is the reduction
impact that it is having on the business) and 2) delivering projects on time and on budget, which is the most important client of resource-related billing process time by 90%, thanks to Cognitus’ solutions. This has had a tangible impact on the
outcome for Cognitus. We believe in focusing on these two metrics, which not only help our clients but also significantly customer’s business operations by significantly speeding up critical processes and reducing the margin of error.
help our revenue. It is this focus that has led to growing our revenue 6x from 2019 to 2023, and we are on track to grow Moreover, Cognitus offers intangible benefits by eliminating the need for custom code in government compliance, ensuring a
30%+ in 2024. more streamlined and standardized approach.

Q: What emerging technologies or trends in SAP do you see as particularly promising or impactful in the near future?
A: We are very excited about SAP’s BTP and Business AI. We see significant potential in applying AI to reduce
implementation timeline, enhance support, and simplify complex workflows/business processes of our clients.

24
Company Spotlight: Cognitus (cont.)
Q&A
Q: What are your thoughts on the current SAP ECC to SAP S/4HANA migration trends? How do you help your clients
with migrations, and what differentiated solutions/products do you offer today to help accelerate the shift?
A: More than 23,000 clients from SAP’s installed base need to migrate to SAP S/4HANA by 2030. Gartner expects that about
6,000 customers each year until 2027 will either upgrade to SAP S/4HANA or be a net new customer of SAP, with about 4000
to 5,000 customers each year until 2030. The trends that we are seeing in the market are directionally the same as what
Gartner is predicting.
1. Our software solutions have been the key enabler in clients moving from ECC to S/4HANA. Through our software
solutions, we have filled critical gaps that SAP’s ERP had for regulated industries from billing to efficiency and contract
compliance; this allows clients to accelerate moving from ECC to S/4HANA. Without our software, the client will have to
spend several million dollars to fill these gaps.
2. Our 18+ offices worldwide, 1,000+ SAP-focused employees, great reference customers, strong software differentiation,
and deep industry expertise continue to empower clients across 11+ industries. SAP recently awarded us SAP North
America Partner Excellence Award for Net New Customers and Highest Cloud Revenue for 2024.

25
Company Spotlight: EPI-USE
Business Overview

Business Description Technology Partners

EPI-USE is a global provider of SAP HR/payroll and ERP software and services. As the world’s leading SAP
HR/payroll specialist and the largest developer of SAP local payroll country versions, EPI-USE addresses the
needs of more than 40 countries. In its 40+ year history, EPI-USE has been involved with ~2,000 SAP
HR/payroll (and other functional modules) implementations and licenses proprietary SAP-related software
to 1,700+ organizations, worldwide.
EPI-USE Labs, the group’s software arm, offers SAP-related data management and landscape
transformation software and IP-leveraged services. EPI-USE’s Payroll Express (PEX) allows MNCs to
affordably deploy SAP Payroll in countries with small employee populations. Clients utilize PEX and EPI-
USE’s PCC Booster as deployment accelerators for a range of organizational sizes and complexity levels. The
firm became the first SAP partner to attain Add-On Local Versions certification for ECP in 2010.
Capabilities

Relevant Information
Founded: 1984 Other Locations: 42 Countries
Employee Base: 4,000+ Status: Privately Held (No Backing) SAP HR/Payroll SAP Cloud Proprietary, IP- Application
Specialist S4/HANA Services Licensed Software Leveraged Management
Headquarters: Isle of Man Industries: Software and Services Utilities Services Services

Notable Clients Recent Awards and Recognitions An Acclaimed Hybrid Business Model
The three most recent of 50+ awards since 2019: Group Elephant is characterized by a primary strategic
• SAP Global SAP SuccessFactors Partner Excellence imperative of going “beyond corporate purpose” in its
Award for Delivery Quality Global 2024 day-to-day activities. Group Elephant funds a nonprofit
• SAP Global SAP SuccessFactors Awards Finalist for called Elephants, Rhinos & People (ERP), focusing on the
Sales Success—Midmarket Global 2024 preservation of at-risk elephants and rhinos in the wild
• Partner Excellence 2024 for SAP SuccessFactors in Southern Africa. 1% of EPI-USE’s annual revenue is
Solutions LAC Latin America 2024 channeled into the ERP program. The hybrid business
model has been the subject of two UC Berkeley case
studies, in 2016 and 2022.

26
Company Spotlight: EPI-USE
M&A History and Criteria
EPI-USE’s Historical Acquisitions

A Cisco Observability Services Two SAP S/4HANA ERP Systems Two AWS Services Specialists Two SAP HR/Payroll Middle-Market Two Software Quality Assurance
Specialist Integrators Services Specialists Service Providers

United States England, Brazil, Africa United States, Brazil Germany Brazil

EPI-USE’s M&A Criteria

Service Capabilities Technologies Clients and Industries Financial Profile Delivery Model

• Service line scope expansion • Proprietary, licensed • Tenure and quality of clients • Substantial recurring revenue • Proprietary services
software assets streams, both from services and methodologies
• Managed services capability • Sector diversification
proprietary licensing • Long-tenured, hands-on
expansion • Extensive IP-leveraged services
• Geographic expansion and business leaders
• High gross margins
relative strength in local market
• Strong balance sheet and high • Inclusive of advisory,
cash conversion ratio deployment, and managed
services

27
Company Spotlight: EPI-USE
Q&A
Q: How do you stay up to date with the latest trends and technologies, and how do you incorporate them into your
client solutions?
Leendert van der Bijl A: Our practitioners stay up to date with emerging technology through the following means:
Managing Director • SAP and industry publications, webinars, industry analyst articles and market trend reports, industry influencer blogs, and
podcasts;
Leendert van der Bijl joined EPI-USE more than 25 years ago after obtaining a master’s
• Participation in SAP and industry conferences;
degree in Computational Linguistics. A veteran of large, complex SAP engagements, in the • SAP’s “Early Adopter” program;
past decade, he completed a stint as Principal at Deloitte and started a technology venture • Formal subscriptions to Gartner, NelsonHall, and Harvard Business Review;
before returning to Group Elephant to lead proposal support worldwide. • Analysis of periodic SAP software releases, for both internal use and to brief clients on the practical implications of
software enhancements;
• Ongoing internships and internal training programs, and participation in SAP certification programs and refresher exams;
and
Q: How do you ensure your solutions are scalable and adaptable in the ever-changing digital landscape, particularly
• Internal test environments, which are used to explore new technologies.
when dealing with SAP?
EPI-USE sits on the SAP Partner Advisory Board and is one of only 19 SAP “AppHaus” partners worldwide, operating an official
A: By way of inter alia, these measures:
AppHaus facility under the aegis of SAP AG. These channels provide us with acute insight into SAP’s product strategy.
• Adhering to SAP’s “clean core” approach, while harnessing a plethora of techniques to ensure that client-specific
requirements are satisfactorily addressed;
Q: How do you introduce SAP solutions to your clients? Do you lead with implementation or have a more consulting
• Qualifying and continually certifying our “package solutions,” as appropriate and practicable;
approach to your engagements?
• Nurturing our multi-decade relationship with SAP, which affords us acute insight into aspects of SAP’s strategy;
• Several co-development initiatives with SAP over decades; A: We engage with prospective clients through advisory, deployment, or operating services proposals, depending upon the
circumstances. Most of our work begins with deployment engagements that often originate via the SAP sales organization, a
• Embracing co-innovation opportunities with clients, and letting client needs influence our development of proprietary
regional EPI-USE practice expanding geographic service to an MNC, conferences, or other professional services firms. Our
software assets and other intellectual property;
proprietary SAP-related software products are compelling differentiators when competing for implementation, support, and
• Operating an internal “IP exchange” platform that enables the dissemination of proprietary software assets across managed services. In addition to HR and payroll, these products support many core SAP functions, including finance, logistics,
regional practices all over the world; and sales, and CRM. The software is typically used during implementation engagements and invariably licensed to clients
• Monitoring and adapting as appropriate to industry/process know-how and “good practice” as it evolves. thereafter. Products and IP-leveraged services, such as the PRISM landscape migration toolset, are embedded in EPI-USE
implementation methodologies.
Q: How important is it to be focused on one specific SAP solution versus providing a broad portfolio of SAP
products/solutions to clients? Q: What are your thoughts on the current SAP S/4HANA migration trends? How do you help your clients with
A: Profoundly so, but at least for smaller to medium-sized firms such as ours, the breadth of capability needs to be achieved migrations and what differentiated solutions/products do you offer today to help accelerate the shift?
while preserving specialization, because SAP’s functional breadth is such that it is impractical to have a single business cover A: Many of our clients evaluate multiple viable migration roadmaps. Data is an almost universal challenge for most
all functional areas. We address this by way of separately led and branded practices, with narrow specializations. Where we organizations, and the decision to either migrate everything or start over is a common conundrum. Proprietary products and
engage with clients across several functional areas and draw in multiple practices, said clients would typically engage with IP-leveraged services, such as the PRISM landscape migration toolset, are embedded in EPI-USE’s implementation
our group through a single contractual arrangement. methodologies, and approaches to services engagements. The firm’s AWS strategic collaboration is a prominent IP-innovation
focus. Our SHIP methodology integrates migration, optimization, and management approaches to enable and accelerate
Q: Do you think SAP customers will have to fully go “cloud” with S/4HANA or pursue more of a hybrid approach due migrations of SAP systems to cloud hyperscalers and private cloud, including the adoption of the SAP RISE and SAP Partner
to the complexity and size of SAP projects? Managed Cloud licensing and support models. Group brand G3G offers “SHIFT to SAP S/4HANA,” a SAP-qualified partner-
A: The size and complexity of an organization will invariably determine what is feasible, and practicable in terms of packaged solution covering migration strategies for all S/4 variations and consumption models.
alternative migration approaches. Large and complex organizations moving to S/4HANA seem to favor a hybrid approach,
because not all of SAP’s many products are cloud-enabled yet. Also, an S/4HANA system will typically need to be integrated
with non-SAP technology, requiring careful landscape architecture.

28
Company Spotlight: Syntax Systems
Business Overview

Business Description Technology Partners

Syntax provides comprehensive technology solutions and trusted professional, advisory, and application
management services for mission-critical applications in the cloud. With 50+ years of experience and 900+
customers around the world, Syntax has deep expertise in implementing and managing multi-ERP
deployments in secure private, public, hybrid, or multi-cloud environments. Syntax partners with SAP,
Oracle, AWS, Microsoft, and Google to ensure customers’ applications are seamless, secure, and at the
forefront of enterprise technology innovation like GenAI.

Relevant Information Capabilities

Founded: 1972 Other Locations: 12+ Globally
Employee Base: 2,800+ Status: Privately Held (PE-Backed)
Headquarters: Montreal, Canada Industries: Manufacturing, Natural Resources, Managed SAP SAP SAP Oracle Microsoft
Consumer Goods, Engineering, and Construction Services S/4HANA ECC SuccessFactors EBS Azure

Notable Clients
Recent Awards and Recognitions An Acclaimed Hybrid Business Model
The three most prestigious awards in 2023: November 2023: The combined solution portfolio of
• SAP® North America Partner Excellence Award Syntax and Beyond Technologies offers a diverse range
for Cloud Delivery Excellence of cloud services and unique, industry-specific
• SAP® Diamond Initiative Award for Digital intellectual property.
Supply Chain Management
• SAP Innovation Award

29
Company Spotlight: Syntax Systems
Q&A
Q: What emerging technologies or trends in SAP do you see as particularly promising or impactful in the near future?

Christian Primeau A: Customers want to buy in an industry context so publishing intellectual property and vertical-unique templates will
continue to drive transformation. SAP and Syntax are aligned on this Industry GTM approach. RISE and GROW with SAP
Global CEO programs are providing the future of the cloud, and their focus on BTP integration with Joule is an absolute game changer for
infusing AI into apps, extensions, and analytics.
Christian Primeau, Global CEO of Syntax since 2018, has transformed the company into a
leading provider of technology solutions and services. With more than 30 years of
Q: How do you ensure your solutions are scalable and adaptable in the ever-changing digital landscape, particularly
experience in senior roles at Dialogic, iWeb, Bell Canada, and Sun Microsystems, he holds a
when dealing with SAP?
bachelor’s degree in Management Information Systems and an MBA from McGill
A: Our boutique-at-scale approach gives customers the flexibility to scale and adapt as per their business and industry
University.
requirements. We stay current with SAP innovation, integrating the latest features and best practices into our solutions. Our
agile methodologies enable iterative development and quick adaptation to new requirements and technological
Q: Tell us about Syntax and what sets your firm apart from competitors in the SAP ecosystem. What is your unique advancements. Additionally, our organizational change management practices ensure smooth transitions and rapid adoption
value proposition? How do you introduce SAP solutions to your clients? of innovation.
A: Our strategy begins with a customer-centric approach, focused on the middle market, where we deliver solutions in an
industry context. Our boutique-at-scale approach delivers personalized, high-quality service to meet the demands and Q: What are your thoughts on the current SAP S/4HANA migration trends? How do you help your clients with
nuances of the local market while leveraging the capabilities of a globally integrated enterprise. We are truly a full-service migrations and what differentiated solutions/products do you offer today to help accelerate the shift?
provider of professional and managed services, with security by design (as evidenced in our 24/7 SOC ) enabled for the A: We are seeing the upward trend of SAP S/4HANA adoption from existing SAP ECC customers. While adoption is promising
future with GenAI. and the pace is increasing, it is unlikely to be at the rate that SAP expects, creating a long tail of ECC customers for many
years to come. Our solution set plays to all three sides of the SAP market: long tail of ECC customers, customers adopting
Q: Do you lead with implementation or have a more consulting approach to your engagement Rise, and customers adopting Grow. Our Syntax Compass framework helps customers navigate the often-complex digital
A: We take a balanced methodology with our SAP engagements to deliver recommendations to clients’ unique needs based journey with a structure to assist them with innovation, transformation, and optimization based on three core Syntax
on where they are in their transformation journey. We begin with a thorough assessment of the client’s business processes capabilities: cloud application implementation and management, ERP application implementation and optimization, and deep
and goals, offering strategic advice and planning to ensure the SAP solutions align with their long-term objectives. industry and technology expertise. Our offerings around exploratory workshops help customers discover, adopt and optimize
Leveraging our deep industry and functional expertise in SAP technologies, we efficiently implement the solutions, ensuring SAP S/4HANA with Syntax and the lucrative incentives that are available.
they are fully integrated and optimized for the client’s environment. This balanced approach ensures that clients not only
receive a robust implementation but also benefit from strategic insights that drive business value and innovation with Q: What are your thoughts on the RISE with SAP program and how SAP can ensure the success of the program?
continuous improvement and keep their longer-term goals in mind. A: Currently, we hear a high satisfaction rate from customers who have moved. We clearly see SAP’s need and strategic
alignment with its partner ecosystem. As such, we are very bullish in our ability to capture the migration, transformation,
Q: What is your approach to building and maintaining long-term client relationships, and how do you ensure client Rise/Grow Consider & Select, as well the Adopt and Operate revenues, in addition to ancillary and functional managed
satisfaction? services.
A: A core pillar in our strategy at Syntax is about showing up as a trusted advisor to our clients and maintaining proactive
communication and engagement. Having a full suite portfolio is an incredible advantage where customers can come to Q: Do you think SAP customers will have to fully go “cloud” with S/4HANA or pursue more of a hybrid approach due
Syntax for support up and down the stack without having to engage multiple vendors. Customer needs often extend into to the complexity and size of SAP projects?
adjacent areas, allowing us to focus on running and managing their applications one day, their security operations the next, A: Many organizations are opting for a hybrid approach initially, especially those with a more complicated existing ERP
or developing strategies to reduce operational costs through GenAI. We also have a strong client advisory board (CAB) landscape. This allows them to prioritize and move critical applications on cloud while maintaining control over legacy
globally, which we use as an extension of our leadership team to truly feel like they have a seat at the table to where we are applications. Over time, as they become more comfortable, they gradually move other applications and modules as well, while
taking the portfolio. This, paired with a global net promoter score (NPS) program, ensures our customers are heard and feel ensuring the security and compliance concerns. Ultimately, the choice between fully cloud and hybrid cloud depends on the
the changes they provide in their feedback. All of these help foster strong and trust-based relationships with our clients. specific needs of the customer and their short/long-term IT and business goals. Hence, it is important to do a value
assessment to develop the right cloud migration strategy.

30
Company Spotlight: Syntax Systems (cont.)
Q&A
Q: How do you think SAP Joule and the integration with Microsoft 365 Copilot could impact your current/future Q: How do you stay up to date with the latest trends and technologies, and how do you incorporate them into your
projects? client solutions?
A: We will be able to leverage AI for areas like programming and documentation, allowing us to be better optimized. This A: With our investments in research and development, we incorporate feedback from our closed-loop process with customers
helps to automate lower-value tasks and allows experts to focus on the high-value areas of the work, such as go live and on features they are looking for during our innovation cycles. By actively participating in industry events and seminars like
beyond. TechEd and involvement/sponsorship of our user communities like ASUG and OAUG, we are continually gathering client
feedback to ensure our offerings remain relevant and effective, helping clients stay competitive and drive business success.
Q: How important is it to be focused on one specific SAP solution versus providing a broad portfolio of SAP We constantly monitor that our IT professionals are certified at the highest level across our portfolio. Finally, we are actively
products/solutions to clients? What are your thoughts on industry-focused solutions within the SAP products? engaged with our analyst community with firms like Gartner, ISG, and others to continually do proactive briefings and
inquiries to keep a pulse on the market and get feedback on our plans.
A: We find that customer challenges extend beyond a single product solution. When you’re in an engagement and truly
listening to the challenges of an organization and where they want to be, there is always the possibility for a short-term fix.
But if that customer has to go somewhere else to fulfill a multi-year strategy, acquisition integration, or pursue market
expansion, you lose the ability to continue to add value with a single point product. The trick is finding the sweet spot to be
differentiated in your core competencies without too many offerings that are on the edge of what the customer perceives as
value.

Q: Does industry focus provide a competitive advantage when engaging with potential clients?
A: Each industry has its own unique business processes and performance indicators. Our own industry IP on top of SAP
products addresses unique business needs and use cases for each industry that we see time and time again. They are much
more in line with industry-specific KPIs and outcomes, leading to faster implementations, purposeful innovation, and better
ROI. Ultimately, this shortens time to value.

Q: How do you measure the success of your solutions, both in terms of client outcomes and the growth of your own
business?
A: We focus on delivering best-in-class operational excellence to clients through the following metrics: maintaining an NPS
of 68 or higher, near-zero downtime, 100% successful implementation/migration rate, and referenceable clients. We focus on
the throughput and KPIs of our clients that are outlined in the project and expected ROI. This, in turn, helps Syntax gain
market share by acquiring net new accounts and expanding our footprint of services by increasing our share of wallet within
our base.

Q: What is your vision for the future of your firm and its role in the evolving digital landscape?
A: Our ambition is to harness technology and talent as a vehicle to solve problems. We want to be the clear leader in
mission-critical, application-managed services for large and growing market segments, namely middle-market/small-
enterprise customers, by focusing on tailored solutions for manufacturing, consumer goods, construction, and natural
resources verticals. Our investments in R&D, paired with our advisory services, support our clients through a changing
landscape. With these agile practices, we continue to advance our commitment to sustainability within Syntax and help our
clients achieve their goals. For us, it’s about investing in the people, the processes, and the technology to be prepared for
the future.

31
Company Spotlight: VISEO
Business Overview

Business Description Technology Partners

Founded in 2000 and based near Paris, VISEO is a leading digital transformation services provider with a
strong focus on SAP solutions. As one of SAP’s largest partners in France, VISEO excels in delivering
complex projects centered on S/4HANA and SAP finance tools, helping businesses optimize operations and
achieve digital excellence. With nearly 1,000 SAP experts, VISEO supports clients through every stage of
their transformation, from ideation to implementation and management. Prestigious clients such as
L'Occitane, L'Oréal, and Yves Saint Laurent have trusted VISEO to lead their SAP-driven initiatives, solidifying
the company's reputation as a key player in the digital economy.

Relevant Information Capabilities

Founded: 2002 Other Locations: 15+ Globally
Employee Base: 3,000 Status: Privately Held (No Backing)
Headquarters: Boulogne-Billancourt, France Industries: Retail, Luxury, Manufacturing, CIO— CTO— CRO— CFO— COO—
Agriculture, Finance SAP ERP App Dev./Data CRM, Planning, Supply Chain
E-commerce Consolidation

Notable Clients Recent Acquisitions

June 2023: With this alliance, VISEO continues its growth by partnering with new
software vendors and expanding its SAP expertise to address business,
technological, and regulatory challenges faced by CFOs/financial departments.

32
Company Spotlight: VISEO
Q&A
Q: What are your thoughts on the current SAP S/4HANA migration trends? How do you help your clients with
migrations and what differentiated solutions/products do you offer today to help accelerate the shift?
Eric Perrier A: Our challenge today is to keep up with the demand coming from clients. Therefore, the current pace of a slow but steady
Co-Founder and Chief Executive Officer migration is beneficial to us as it provides us with a huge visibility on our business without putting too much pressure on our
delivery teams. We help our clients thanks to the accumulated experience coming from 25+ years of SAP implementation
Eric Perrier obtained a master’s degree in Marketing and Psychology for Management
experience. We consider that every migration is very different, especially for large organizations, so we do leverage some
from Royal Holloway, University of London. In 1997, Mr. Perrier joined Accenture as a accelerators where we can, but the vast majority of the work to be done is specific to each project. Therefore, our focus is on
consultant, gaining valuable experience in the field. He then co-founded VISEO in 2000 leveraging the best-in-class solutions provided by SAP to build assets our clients will be comfortable with for the next 10–15
and embarked on a career spanning over 25 years. years, rather than upselling our own internal prepackaged solutions.

Q: What are your thoughts on the RISE with SAP program and how SAP can ensure the success of this program?
Q: Tell us about VISEO and what sets your firm apart from competitors in the SAP ecosystem. What is your unique A: Since the beginning, we have been very enthusiastic about this program, its value proposition, and the way it retributes the
value proposition? work achieved by the integrator. We are fully aligned with SAP and its roadmap for the coming years.
A: Our unique value proposition on the market is being the only multi-specialist midsized player with the capacity to carry
out complex SAP projects, from design and integration to maintenance at a global scale. Being a midsized player allows us Q: How do you ensure your solutions are scalable and adaptable in the ever-changing digital landscape, particularly
to have the agility and customer intimacy that the handful of global competitors able to manage large-scale projects often when dealing with SAP?
lack. Additionally, being a multi-specialist sets us apart from pure players as we are able to manage the integration of SAP in A: Our main asset is our strong proximity to SAP. As a major player in the European market, we are a member of the SAP
complex IT environments and are also experts in most dimensions of our clients’ landscapes. We deliver our SAP expertise council of partners. This, plus our alliance structure, allows us to be in constant communication and interaction with SAP all
thanks to our 1,000 consultants, mostly specialized in S4, SuccessFactor, and Group Reporting. across the hierarchical ladder, making us not only very aware of the development of SAP technologies but also contributors to
this evolution.
Q: How do you introduce SAP solutions to your clients? Do you lead with implementation or have a more consulting
approach to your engagements? Q: How important is it to be focused on one specific SAP solution versus providing a broad portfolio of SAP
A: VISEO’s DNA is to be a platform/software integrator, but as traditional consulting firms have moved into the digital products/solutions to clients?
market, bringing their high value-added mindset to our ecosystem, we have decided to upgrade our value proposition. A: Our approach has always been to work with a best-of-breed approach. For us, it is a no-brainer that the highest-
VISEO’s strategic pivot these past years has been to move from a platform-based integrator to a consulting firm leveraging performing ERP on the market is built by SAP; therefore, 100% of our ERP focus is on S/4. On financial consolidation, we have
technology to address business needs. the ambition to be the leader of the European market with Group Reporting as well.
This is reflected in the acquisitions we have achieved in the past years: But, we consider that other vendors have developed tools that are highly synergistic with our SAP value proposition.
• Progress Management in 2021, specialized in retail and agro-industrial issues in the SAP world. Therefore, we have built strategic partnerships with vendors like Salesforce for CRM, Anaplan for Planning, etc. This allows us
• Synvance in 2023, specialized in the digital transformation of the finance function, addressing SAP issues with a strong to have a client-centric approach to our recommendations, focusing on their needs rather than on the need to sell all of a
focus on finance-related problematics. vendor’s solutions, ensuring long-term client satisfaction over short-term ambitions. So, for us, our strong focus on S/4 and
This has led us to verticalize our go-to-market and delivery organization, building teams dedicated to our major “plays”: SAP finance tools, combined with our diversified approach to other solutions, is our guarantee of being the best service
retail, luxury, manufacturing, agriculture, and finance. provider to our customers.

33
Company Spotlight: VISEO (cont.)
Q&A
Q: How do you stay up-to-date with the latest trends and technologies, and how do you incorporate them into your
client solutions?
A: We understand that, by essence, a technology or a methodology has an expiration date for VISEO, either because it will
be replaced and die off or it will become a commodity where our cost-intensive, “high expertise, high value” model will not
be competitive. Therefore, our strategy is to always avoid commoditization and constantly reposition ourselves on high
added value services. To make sure that we are capable of remaining relevant in such a fast-moving market, we have to cross
four channels of information:
1. Client needs: What is the funnel of pain points that are going to become tomorrow’s priority for our customers? What
problems are they solving, which will therefore generate decreasing levels of business for us?
2. Internal market/functional experts: Our in-depth knowledge of the issues of finance, supply chain, retail, etc., allows us
to anticipate what will be the next wave of investments from our clients.
3. Internal platform experts: Our expertise in our vendor partners’ solutions and their strengths and weaknesses compared
to other tools gives us a great capacity to anticipate future market trends.
4. The vendors and the rest of our ecosystem (research firms, competitors, etc.): Understand where the market is by
analyzing what decisions the companies in our markets are making.
Putting all this together helps us build a unified vision of how we should position ourselves in the future.

Q: What is your vision for the future of VISEO and its role in the evolving digital landscape?
A: Be the leader of the end-to-end digitalization of international midsized companies and be a strategic service provider on
critical functionalities for large groups. Our role in the coming years will be to deliver high added value digitization services,
to help all critical business functions or our clients meet their ambitions by leveraging our technological and growing
functional expertise.

34
SAP Sector Spotlight PE-Backed Platform Overviews
Platform

Website Website Website Website

Sponsor

Inv. Date June 2017 February 2024 November 2020 June 2022

Headcount ~3,600 ~200 ~400 ~1,000

20+ 2 5 18
Locations Primary Location: Richardson, Texas Primary Location: London, United Kingdom Primary Location: Utrecht, Netherlands Primary Location: Hamburg, Denmark

Select Clients/ Port Telecom

Industries Hi-Tech Media

Appridat Solutions (May 2023)

Nessi (February 2023) Maximum Solution Consulting Group (October
BackInTheBlack (May 2023)
ITvisors (January 2022) 2023)
Nationwide Recovery Services (May 2023)
Acquisitions Premier IT Solutions (May 2023)
- Meridian IT (June 2021) SI-Consulting (May 2023)
Asecom (April 2021) Enghofer Koch Consulting (April 2023)
DX Sherpa Technologies (August 2022)
Xperi (September 2020) Comporsys Hansa (February 2017)
Cogniwize Infosystems (August 2022)

• SAP S/4HANA Transition

• Enterprise Systems • SAP BROM
• SAP Consultancy • SAP Operations and Services
Service • Capabilities Across the Entire SAP Portfolio • SAP Subscription Billing
• SAP Support • SAP Automation and Digitalization
• Data Analytics • SAP CPQ
Offerings and • SAP License Support • SAP Master Data Governance
• Robotic Process Automation • SAP Entitlement Management
Capabilities SAP Revenue Recognition
• SAP Technical Support • SAP Security
• Low Code/No Code •
• SAP Functional Support • SAP Business Consulting
• Cloud • SAP Analytics Cloud
• SAP Analytics

35
SAP Sector Spotlight PE-Backed Platform Overviews (cont.)
Platform

Website Website Website Website

Sponsor

Inv. Date December 2021 November 2022 May 2021 May 2022

Headcount ~75 ~90 ~1,400 ~85

8 12 2 1
Locations Primary Location: Lier, Belgium Primary Location: San Jose, California Primary Location: Plano, Texas Primary Location: Atlanta, Georgia

Select Clients/
Supply Chain
Industries

Planlogic (October 2023) PV (October 2023)

Blents (June 2023) Big Compass (April 2023)
WCS Consulting (May 2023)
Acquisitions Recomatics (March 2023)
Novigo (November 2022)
ITK Solutions Group (October 2022) -
Zeibur (November 2022) ArganoEchelon (June 2022)
Domani Business Solutions (December 2021) NorthPoint Group (June 2022)

• S/4 Enterprise Management

• SAP S/4HANA International Trade
• S/4HANA • SAP Central Finance
Service • SAP S/4HANA Cloud Public • SAP Global Trade Services
• SAP Ariba • Suite on HANA
• SAP Business One • SAP Transportation Management
Offerings and • SAP SCM • S/4HANA Industry Solutions
• SAP Enable Now • SAP Integrated Business Planning
Capabilities SAP Business Networks for Logistics
• SAP IBP • Business Suite
• SAP BTP •
• SAP APO • SuccessFactors
• SAP Extended Warehouse Management
• Concur

36
SAP Sector Spotlight PE-Backed Platform Overviews (cont.)
Platform

Website Website Website Website

Sponsor

Inv. Date April 2024 July 2017 May 2022 January 2021

Headcount ~1,000 ~600 ~370 ~350

18+ 2 12 1
Locations Primary Location: Dallas, Texas Primary Location: Edison, New Jersey Primary Location: Dallas, Texas Primary Location: Oslo, Norway

Select Clients/ Aerospace Automotive CPG

Professional
Industries Mining Public Sector Services

Grey Monarch (September 2022)

Epical (December 2023)
Smenso (May 2022)
Wharfedale Technologies (February 2022) POSBE (October 2023)
Appsian Security (May 2022)
Acquisitions WynBlue (October 2021) Ocean9 (February 2018)
CSI Tools (May 2022)
Cross Application Consulting (January 2023)
iQlink (December 2011) PearlConvert (April 2022)
SAST Solutions (May 2022)
Zuite Business Consulting (June 2021)
Security Weaver (March 2022)

• GROW With SAP • SAP ERP

Service • RISE With SAP
• RISE With SAP
• SAP Data Security • S/4HANA
• SAP Cloud Financial Optimization
Offerings and • SAP Services • SAP SuccessFactors • SAP SuccessFactors
• SAP Cloud Discovery
Capabilities • SAP Extend and Innovate Services
• Manage and Optimize SAP Operations
• SAP Access Control • SAP S/4HANA Move
• Implementation Services • SAP Ariba

37
SAP Sector Spotlight PE-Backed Platform Overviews (cont.)
Platform

Website Website Website Website

Sponsor

Inv. Date January 2020 September 2019 April 2021 July 2024

Headcount ~250 ~500 ~140 ~4,500

4 6 1 43
Locations Primary Location: Westchester, Illinois Primary Location: Ottawa, Canada Primary Location: Addison, Texas Primary Location: Barcelona, Spain

Select Clients/
Industries

ECA Consult (April 2024)

H.T. High Technology ((February 2024)
Duet Protocol (May 2021) Gesein (January 2024)
Acquisitions ManageCore (March 2024) Manageserve (March 2021) Wise Men Consultants (January 2023) Teamsoft (December 2023)
Agosto (March 2020) Delsys (October 2023)
Little Fish (July 2023)
Gunpowder (April 2023)

• SAP Consulting
• SAP Cloud Solutions
• SAP S/4HANA Migration Advisory
Service • SAP Managed Services
• SAP Managed Services • SAP S/4HANA Design and Implementation
• SAP S/4HANA
• RISE With SAP • RISE With SAP
Offerings and • SAP Migration Services • SAP BTP Integration
• SAP BTP Services • SAP Analytics
Capabilities • SAP Professional Services • SAP Managed Testing Services
• SAP Migration • SAP ERP
• SAP Managed Services
• SAP SuccessFactors HCM
• Capabilities Across the Entire SAP Portfolio
38
SAP Sector Spotlight PE-Backed Platform Overviews (cont.)
Platform

Website Website Website Website

Sponsor

Inv. Date September 2023 October 2021 November 2020 December 2020

Headcount ~450 ~2,900 ~4,257 ~4,900

3 6 23 1
Locations Primary Location: Boston, Massachusetts Primary Location: Montreal, Canada Primary Location: Paris, France Primary Location: Alcobendas, Spain

Select Clients/
Industries

Beyond Technologies (October 2023)

Gemserv (January 2023)
Illumiti (June 2021) psKINETIC (February 2023)
Dataroots (December 2022)
Linke Information Technology (April 2021) Copilot (Jan 2023)
Acquisitions -
Freudenberg IT (February 2019)
Createch (January 2022)
ZIngton (August 2023)
Insum (November 2021)
EmeraldCube Solutions (January 2019) Hexagon Data (August 2022)
Onepoint Luxemburg (April 2021)
Core Services (April 2017)

• SAP Consulting
• SAP S/4HANA
• SAP Cloud Solutions
Service • SAP Dual Maintenance • SAP S/4HANA
• RIS With SAP
• SAP CX
Offerings and • GROW With SAP
• RISE With SAP • RISE With SAP • SAP S/4HANA
• SAP SuccessFactor
Capabilities • SAP Services • GROW With SAP • Industry-Specific SAP Solutions
• SAP CX
• SAP BTP
• SAP BTP
• SAP SuccessFactors HCM

39
 1
PE Case Study: Madison Dearborn Partners | Navisite
Date Relevant Targets Location Transaction Commentary and Rationale

Jan 2024 Exit: Madison Dearborn Partners sells Navisite to Accenture.

Seattle, WA The acquisition enhances Navisite’s enterprise application, data management, and cloud services portfolio with
Nov 2021
Salesforce advisory and managed services.

Charlotte, NC The acquisition augments Navisite’s managed services for Oracle and SAP applications, such as Oracle EBS, JD
Jan 2021
Edwards, PeopleSoft, and OneStream.

Chicago, IL The acquisition enhances Navisite’s SAP-managed cloud services with end-to-end SAP business application and
Nov 2020
platform expertise.

Woburn, MA The acquisition expands and enhances AWS offerings with a range of capabilities from cloud assessment, migration,
Jun 2020
and managed DevOps.

Rebrand: “After a series of deals unifying diverse MSP practices, a revamped and renewed Navisite looks to emerge as a powerhouse in bringing
cloud services to the midmarket.”

Andover, MA The acquisition adds customer depth, expands the global network of data centers, and provides hundreds of
Sept 2019
certified experts in cloud infrastructure.

Plano, TX ClearDB’s DBaaS platform and services complement RDX’s existing managed services offerings to provide a turnkey
Feb 2019
outsourced solution.

London, U.K. The acquisition of Clckwrk adds technical depth for customers interested in moving Oracle and other enterprise
Feb 2019
applications into the public cloud.

Dayton, OH The acquisition of CommitDBA enhances RDX’s DBaaS capabilities and service offerings with Epic Caché ODBA
May 2018
support.

Investment: Madison Dearborn Partners acquired Navisite, a leading provider of database administration and
Apr 2018
cloud managed services.

Sources: S&P Capital IQ, PitchBook.

40
Recent SAP Partner M&A Activity
Target Acquirer SAP Product Date Commentary
EPAM Systems has announced an agreement to acquire NEORIS, a global advanced technology consultancy with more than
Sep 2024 4,700 professionals. With NEORIS’ strong track record in complex digital projects—including SAP, data analytics, and AI—EPAM
aims to strengthen its global and nearshore delivery capabilities and expand its market presence.
Capgemini has signed an agreement to acquire Syniti, a leader in enterprise data management software and services, to
Aug 2024
enhance its data-led solutions globally, particularly for large-scale SAP transformations such as the move to SAP S/4HANA.

The Carlyle Group acquired a majority interest in SEIDOR, a leading Spanish technology services and solutions consultancy. The
Jul 2024
investment aims to support SEIDOR’s growth by investing in innovation and evolving the company’s go-to-market strategy.
Protera Technologies acquired Managecore, enhancing its SAP and cloud-managed services with Managecore’s expertise in
Apr 2024 Google Cloud Platform and RISE with SAP, thus expanding Protera Technologies’ capabilities and global support for SAP on
public cloud.
Acuiti Labs, a leading SAP consultancy specializing in optimizing the Quote-to-Cash process, received a significant investment
Apr 2024
from Quilvest Capital Partners to support its global expansion and technological innovation in the SAP BRIM space.
Cognitus, a Dallas-based SAP consultancy with more than 1,000 SAP-focused professionals across 17 offices, received a
Mar 2024 significant investment from Haven Capital Partners and Siguler Guff to drive its growth, enhance software innovation, and
expand its global and technological footprint.
H.I.G. Capital agreed to acquire Alight’s Payroll & Professional Services business for ~$1.2 billion, aiming to establish it as a
Mar 2024
global leader in payroll and HCM services.

SEIDOR acquired a controlling stake in HT High Technology, an IT solutions provider and SAP partner, to accelerate digital
Feb 2024
transformation and strengthen its presence in the Italian middle-market sector.

FPT Software acquired a minority stake in First North Consulting and formed a strategic partnership to enhance its financial
Jan 2024
services capabilities in North America, leveraging First North Consulting’s expertise and SIDE’s market infrastructure platform.

Learning Pool acquired OnScreen, a digital adoption platform company, to enhance its technology portfolio and improve
Jan 2024
employee onboarding and software adoption through guided tutorials and contextual help.

Sources: S&P Capital IQ, PitchBook. Denotes deals done by Houlihan Lokey.

41
Recent SAP Partner M&A Activity (cont.)
Target Acquirer SAP Product Date Commentary

Accenture completed its acquisition of Navisite, a digital transformation and managed services provider, to enhance its cloud
Jan 2024
transformation capabilities and add 1,500 professionals to its team.

NTT DATA Business Solutions AG, a global strategic partner of SAP, acquired U.K.-based digital operations provider Sapphire to
Nov 2023
enhance its leadership in the SAP middle-market sector and expand its services in the U.S. and U.K.

Accenture acquired The Shelby Group, a procurement technology consultancy, to enhance its sourcing and procurement
Nov 2023
technology capabilities.

Syntax Systems acquired Montreal-based Beyond Technologies, enhancing its existing SAP enterprise application ecosystem
Oct 2023
expertise.

Ridgemont Equity Partners acquired SmartShift, a specialist in intelligent automation for SAP transformation, to streamline its
Sep 2023
SAP ERP to a modern cloud-based system.

Amista acquired Anrova Solutions, further developing Amista’s comprehensive solutions of SAP ERP solutions and SAP CRM
Jun 2023
applications, data integration technology, digitization document workflows, and learning and change management solutions.

VISEO acquired Synvance to continue its growth by partnering with new software vendors and expanding its SAP expertise to
Jun 2023
address business, technological, and regulatory challenges faced by CFOs/financial departments.

Akquinet acquired Poland-based SI-Consulting, an S/4HANA specialist, expanding Acquinet’s market presence through IT
May 2023
implementation, IT infrastructure, and software development services.
Cognizant agreed to acquire Houston-based Utergration, a full-service consulting and solutions provider specializing in SAP
Dec 2022 technology and SAP-certified products for the energy and utilities sectors, to gain 350 employees in North America and
complement Cognizant’s SAP practice.
Valantic received an investment from Deutsche Private Equity to further grow its business by acquiring new companies,
Oct 2022
developing innovations, hiring and training personnel, and expanding into new markets.

Sources: S&P Capital IQ, PitchBook. Denotes deals done by Houlihan Lokey.

42
Houlihan Lokey’s SAP Sector Team Houlihan
Lokey’s Global
Houlihan Lokey’s SAP team consists of financial professionals within Houlihan Lokey’s Leading M&A Platform Footprint
the firm’s global IT Services practice, reflecting the convergence of
2023 M&A Advisory Rankings 2023 M&A Advisory Rankings
enterprise applications and technology in delivering ERP services. All Global Business Services Transactions
Advisor Deals
All Global Transactions
Advisor Deals 55+
IT Services Team Members 1 Houlihan Lokey 63 1 Houlihan Lokey 352
IT Services
2 Rothschild & Co 46 2 Rothschild & Co 349
Financial
3 Lincoln International 32 3 Goldman Sachs & Co 300
Professionals
4 Clearwater International 31 3 JP Morgan 300
Across the
5 Goldman Sachs & Co 27 5 Morgan Stanley 253
Globe
Source: LSEG (formerly Refinitiv). Source: LSEG (formerly Refinitiv).
Excludes accounting firms and brokers. Excludes accounting firms and brokers.

36
Leroy Davis Malte Abrams Oliver Vaughan Sara Napolitano
Managing Director Managing Director Managing Director Managing Director No. 1 No. 1
Charlotte Frankfurt London Paris Investment Bank for All Global Business Investment Bank for All Global
Leroy.Davis@HL.com Malte.Abrams@HL.com Oliver.Vaughan@HL.com Sara.Napolitano@HL.com
Services M&A Transactions in 2023 M&A Transactions in 2023 Locations
+1 704.247.6458 +49 (0) 69 20 434 6425 +44 (0) 20 7484 4050 +33 1 88 46 10 44 Worldwide

has received a minority

investment from has been acquired by
a portfolio company of

~2,000
Total Financial
has received an investment from

Professionals
R.B. McCutcheon Alex Scott Ilia Ulianchuk Mitchell DeShurko Sellside Advisor Sellside Advisor* Sellside Advisor

Director Vice President Vice President Associate

Atlanta
RMcCutcheon@HL.com
Atlanta
AScott@HL.com
Charlotte
Ilia.Ulianchuk@HL.com
Charlotte
Mitchell.DeShurko@HL.com 2,000+
+1 704.249.5762
+1 404.495.7059 +1 404.926.1609 +1 704.247.1866
has been acquired by Clients Served
Annually
has been acquired by

Tombstones included herein represent transactions closed from 2018 forward.

*Selected transactions were executed by Houlihan Lokey professionals while at other firms acquired by Houlihan Lokey or by
professionals from a Houlihan Lokey joint venture company. Sellside Advisor* Sellside Advisor*

43
Disclaimer

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44
CORPORATE FINANCE
FINANCIAL RESTRUCTURING
FINANCIAL AND VALUATION ADVISORY

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