M&A guy here and disclaimer, former SAP employee. It's not normal, but you have to define what normal is. A few things worth noting (which are all speculative

M&A guy here and disclaimer, former SAP employee. It's not normal, but you have to define what normal is. A few things worth noting (which are all speculative btw): - SAP doesn't have a solid CX platform, but has tried to push this to the market for years because the demand is there - SAP has arguable the strongest foothold in the top 2000 businesses in the world. - SAP once organically grew their ERP products but decided somewhere around the late 2000's that it couldn't innovate any longer but know cloud/SaaS is the future, so their growth has been largely due to acquisition of cloud/SaaS providers. They want to continue to tell the street they're growing subscriptions and this is one way to do it. - SAP sales is top tier (whether you like it or not). If their revenue is $400m they'll easily be able to sell 2x that in short order to their existing client base. This is what M&A guys often call "synergies". If you assume 30% eventual gross margins, then a potential ROI is foreseeable. That all being said, if the market for this type of service isn't there at enterprise scale ($1B/yr revenue), then it's probably overpriced.