SAP to Strengthen Operations in MENA

by Claire McPeak

SAP AG today announced the acquisition of the software license and maintenance business of SAP Arabia, its exclusive long-term partner in the region. Under the terms of the agreement, SAP will acquire selected existing assets, including all existing software license and maintenance customer contracts, and trademarks from SAP Arabia. Aligned with SAP's global go-to-market strategies, SAP will first establish subsidiaries in Dubai and Saudi Arabia to reinforce its ongoing commitment to deliver value and continuous innovation to customers in the region.

"SAP Arabia has created a good foundation, which we intend to build upon in our goal to meet growing market demand in the region," said Ernie Gunst, president, Customer Solutions Operations Europe Middle East and Africa, SAP. "This acquisition brings SAP closer to its customers and partners, enabling us to offer them greater business value and innovation."

Sergio Maccotta, who was formerly managing director in charge of the SAP Arabia relationship, has been named managing director of SAP in the Middle East and North Africa. In his new role, Maccotta will be responsible for strategic planning, operational excellence, sales and field operations, professional services and overall performance for the region. Maccotta will report into Bernd Kraus, who has overall responsibility for the South East Europe and Middle East Market Unit.

As part of the agreement, the formerly named SAP Arabia will continue to work with SAP AG as a strategic partner and non-exclusive value-added reseller within the scope of the SAP Partner Edge program.

"This important step in the overall SAP business strategy has been part of our ongoing discussions with SAP to bring product development closer to the region," said Essam Enany, president of SAP Arabia. "With over 13 years of experience we have acquired a deep understanding of the local market and are well positioned to become one of SAP's strongest partners. In the future, we plan to focus our resources on the emerging markets and specialized sectors such as SME, public sector and education."

The acquisition is subject to customary closing conditions and expected to be completed in SAP's fourth quarter of 2007. Financial terms of the all cash transaction were not disclosed.