German multinational software corporation SAP is working with financial advisor Moelis & Company to sell off Litmos, the corporate eLearning software platform it acquired in 2018, according to reports by Reuters. Founded in 2007, Litmos is already a well-established and profitable venture that could garner a valuation as high as $1 billion. Insiders expect Moelis to start the auction process soon, with a focus on attracting tech-focused private equity funds based in the United States and Europe.
SAP acquired Litmos as part of its $2.4 billion purchase of U.S. cloud software firm Callidus, rebranding it as SAP Litmos. The California-based subsidiary provides corporate clients with learning software for developing sales and customer service workforces, currently used by more than 30 million people in 150 countries. The move comes as SAP is apparently streamlining its operations and focusing primarily on its cloud-based revenue and other growth drivers. The corporation worked with Moelis previously to offload Digital Interconnect (SDI) to Swedish cloud communications firm Sinch in 2020.