SAP to acquire enterprise architecture management software company LeanIX
SAP SE has announced its intention to acquire LeanIX GmbH, a leader in enterprise architecture management (EAM) software. The acquisition is aimed at bolstering SAP’s portfolio of business transformation tools and will extend its suite to include AI-enabled process optimization capabilities.
The transaction is expected to close in Q4 2023, pending regulatory approvals. LeanIX has been a strategic partner of SAP for a decade and is integrated with SAP Signavio solutions. LeanIX’s SaaS offering allows organizations to visualize their IT landscapes, identify obsolete applications, and plan new architectural roadmaps.
It has also recently launched an AI assistant for enhanced automation in enterprise architecture management. The acquisition will allow SAP customers to have a more comprehensive view of their business processes and IT landscape, facilitating continuous business transformation. LeanIX will continue to serve non-SAP landscapes as well.
LeanIX’s Continuous Transformation Platform® is used by corporate IT and product IT for comprehensive transparency and better governance in the company. Customers organize, plan and control their IT landscapes worldwide with the automated and data- driven approach of LeanIX. With solutions for enterprise architecture management, SaaS and value stream management, LeanIX helps companies make informed decisions and accelerate transformations.
LeanIX, headquartered in Bonn, was founded in 2012 by André Christ and Jörg Beyer. At the end of the 2022 financial year, LeanIX employed 284 people at locations in Bonn, Munich and in the home office. Additional locations in Boston and San Francisco (USA), Hyderabad (India), Ljubljana (Slovenia), Paris (France) and Amsterdam (Netherlands) are operated by subsidiaries.
The focus of development activities of LeanIX last year was the further development of the three existing products. With the help of the Enterprise Architecture Management (EAM) product, companies design technology landscapes that support IT transformation. SaaS Management Platform (SMP) enables companies to discover, optimize and manage the internal software-as-a-service landscape. Value Stream Management (VSM) helps develop reliable digital products faster.
There are a large number of internationally positioned companies in the market for enterprise architecture tools. Despite the company’s relatively young history, LeanIX is established on the market and was again included as a leader in Gartner’s 2022 Magic Quadrant for Enterprise Architecture Tools in the past financial year. Additionally, LeanIX was named a 2022 Gartner Peer Insights Customers’ Choice for Enterprise Architecture Tools.
The business development of LeanIX GmbH in the 2022 financial year was characterized by strong sales growth with a moderate increase in the number of employees. The company’s annual deficit in 2022 was 14.0 million euros. As a scale-up, LeanIX is currently in the growth phase with organic sales growth of 64.2%. The growth is therefore significantly higher than the general development in the software sector in the ICT industry in Germany.
LeanIX’s sales revenue increased significantly in the financial year 2022 by 64.2% from EUR 34.6 million in 2021 to EUR 56.8 million. The majority of sales revenue comes from the sale of the software. 58.0% of sales revenue is generated by LeanIX GmbH in the EMEA and APAC region, 42.0% of LeanIX GmbH sales are generated in the Americas region by the subsidiary LeanIX Inc. The strong sales growth is offset by increased personnel costs of EUR 25.2 million (2021: EUR 20.9 million) as well as increased other operating expenses of EUR 40.4 million (2021: EUR 28.6 million). opposite. The increased personnel costs are explained by further investments in additional personnel.
The balance sheet total fell by EUR 12.7 million in the financial year from EUR 72.8 million in 2021 to EUR 60.1 million. The background to this is, in particular, the decline in cash on hand by EUR 16.7 million, mainly as a result of the annual deficit generated. The increase in receivables from affiliated companies amounting to EUR 2.3 million had a counteracting effect, mainly resulting from the cooperation agreement concluded with LeanIX Inc. The increase in deferred income is due to higher deferrals of revenue from prepaid SaaS contracts with customers