SAP America represents its German parent, SAP, in the US, providing enterprise software and services for managing accounting, distribution, human resources, and manufacturing functions. The company's products include business intelligence, enterprise resource planning, customer relationship management, and supply chain management software. SAP America offers industry-specific applications for markets ranging from aerospace and defense to wholesale distribution. Its services include consulting and support, as well as custom development and application hosting. SAP America accounts for more about one-quarter of SAP's sales, and three-quarters of all the Americas.
SAP serves a number of different industries, including manufacturing, services, energy and natural resources, consumer products, retail, and others. Manufacturing customers are by far the largest group, and they comprise discrete manufacturers (makers of products that go directly to consumers) and process manufacturers.
Revenue for SAP America grew nearly 15% to €3.7 billion ($4.8 billion). Like most other companies, SAP America took a beating during the heaviest part of the global recession, but IT spending recovered in 2010 and continued to be healthy through 2011. Having the greatest growth come in its largest customer set -- discrete manufacturing -- played a big part in the year's positive result.
Although SAP has favored internal growth instead of aggressively pursuing acquisitions like rival Oracle, it has pursued some smaller acquisitions in the US. More recently, however, it has come out of its shell and made some larger purchases. In 2010 it bought Sybase for $5.8 billion, which SAP expected to help expand its reach into mobile platforms. The company closed another multi-billion dollar purchase in 2012 when it bought human capital management provider SuccessFactors for about $3.4 billion in cash. While SuccessFactors products are a complement to SAP's portfolio, its cloud-based approach was an even bigger selling point as SAP aggressively pursues the software-as-a-service model.
In late 2012 SAP America bought Ariba for about $4.3 billion. Ariba offers a cloud-based business commerce network that allows buyers and sellers connect with each other. The deal strengthens SAP America's cloud portfolio and its presence in the business collaboration space.
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