SAP Acquires LeanIX, a German Startup, to Accelerate Companies' Modernization Efforts

10 Sep, 2023

SAP Acquires LeanIX, a German Startup, to Accelerate Companies' Modernization Efforts

SAP has announced its acquisition of the German startup LeanIX, aiming to assist companies in addressing technical debt – the challenge of outdated systems hindering modernization efforts. This purchase complements SAP's previous acquisition of Signavio in 2021 for a reported $1.2 billion. While the exact purchase price for LeanIX remains undisclosed, it is rumored to be in a similar range.

SAP intends to leverage LeanIX's capabilities to help businesses expedite their software stack modernization. CEO Christian Klein emphasized the importance of recognizing the interconnectedness of systems and processes, building on SAP's experience to accelerate modernization initiatives. The goal is to create a unique "business transformation" suite based on Signavio, LeanIX, and SAP's existing assets. This suite will provide a comprehensive view of business processes and applications, including insights into process dependencies and the impact of potential transformations on IT landscapes.

LeanIX CEO André Christ sees the synergy between the two companies, with SAP's business insights and collaborative approach complementing LeanIX's simplification of technology adoption. Notably, LeanIX recently partnered with Microsoft to launch the LeanIX AI Assistant, a generative AI tool designed to enhance software interaction and architecture recommendations, aligning with SAP's vision to expedite transformation processes.

While integrating startups into large corporations can be challenging, SAP's existing partnership with LeanIX and shared objectives could facilitate a smoother transition. Moreover, the acquisition aligns with SAP's goal of helping customers reduce technical debt, a significant concern for companies pursuing digital transformation.

Thomas Preuss, managing partner at German venture capital firm DTCP, views this deal as a testament to the strength of the German startup ecosystem, signaling Europe's emergence as a competitive hub for enterprise SaaS businesses.

LeanIX, founded in 2012, has raised approximately $120 million, with revenue approaching €100 million and a customer base of 1,000. The acquisition is anticipated to close in the fourth quarter, pending regulatory approvals.