SAP has extended the deadline for its offer to buy outstanding shares of cloud software developer SuccessFactors Inc. as SAP awaits approval of the $3.4 billion acquisition from a government organization.
SAP has yet to receive permission for the acquisition from the Committee on Foreign Investment in the United States (CFIUS), a U.S. inter-agency committee charged with scrutinizing acquisitions of U.S. businesses by foreign companies for any potential impact on national security.
Friday morning an SAP spokesman said CFIUS has not given any indication of problems with the proposed acquisition of SuccessFactors, but SAP is waiting for an update on the committee's review.
On Dec. 3 SAP announced a deal to buy SuccessFactors, a developer of cloud-based human resource management applications, for $40 per share or $3.4 billion after cash and debt. In addition to expanding SAP's cloud application offerings, co-CEO Bill McDermott said the acquisition would also bring more "cloud DNA" to SAP.
In late December the acquisition cleared a critical hurdle when the U.S. Federal Trade Commission granted an early termination of the Hart-Rodino Act waiting period, a decision that means the SAP-SuccessFactors deal is unlikely to face opposition from U.S. anti-trust regulators.
But the acquisition can't be completed until the CFIUS gives its approval.
While awaiting that ruling, SAP said Thursday that it has extended the expiration of it's cash tender offer for all outstanding SuccessFactors shares to 5:00 p.m. ET, Jan. 25. The original offer expired at 5:00 ET on Jan. 18.
