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SAP has 'zero interest' in buying Salesforce.com - CEO

Published 05/05/2015, 18:01
© Reuters. SAP's Chief Executive McDermott delivers a keynote speech during the Mobile World Congress in Barcelona
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FRANKFURT/WALLDORF (Reuters) - SAP Chief Executive Bill McDermott said his company has "zero interest" in acquiring software rival Salesforce.com.

Bloomberg reported last week that Salesforce was approached by a potential acquirer and that it had hired financial advisors after receiving the offer, citing people with knowledge of the matter.

"We bought always assets that are best-in-class, which are ascending in value," McDermott said in response to a question at a news conference at SAP's annual SAPPHIRE user conference in Florida, which was webcast.

"We have never bought something that was impaired and in decline," he said. "We have zero interest in Salesforce.com."

SAP is battling alongside established U.S. software makers such as Oracle (NYSE:ORCL), IBM (NYSE:IBM) and Microsoft to boost Internet-based software sales and fend off pure cloud-based rivals Salesforce.com and Workday.

SAP has spent roughly $20 billion (£13.1 billion) on acquisitions in recent years. But it has said its $7.3 billion purchase of travel and expense management software maker Concur, its largest transaction ever, would be the last large merger for the foreseeable future.

Asked whether he could imagine buying Salesforce, McDermott said: "I can't. I would love to give you an answer where that might be possible but it's really not," he said, adding that Salesforce cloud-software had become a commodity.

"SAP has it, Oracle has it. Lots of others have it. That's why we don't want to buy them."

© Reuters. SAP's Chief Executive McDermott delivers a keynote speech during the Mobile World Congress in Barcelona

Salesforce has a market capitalisation of about $50 billion, just over half of SAP's $94 billion valuation.

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