SAP to Acquire SmartRecruiters, Enhancing Talent Acquisition Capabilities

SAP plans to acquire SmartRecruiters to enhance its talent acquisition capabilities. The acquisition aims to integrate recruitment automation and AI-driven approaches within SAP's HCM suite, improving decision-making, reducing hiring time, and enhancing the candidate experience. The transaction is expected to close by Q4 2025, pending regulatory approvals.

SAP (NYSE: SAP) has entered into an agreement to acquire SmartRecruiters, a leading talent acquisition (TA) software provider. The acquisition aims to integrate recruitment automation and AI-driven approaches within SAP's HCM suite, enhancing decision-making, reducing hiring time, and improving the candidate experience. The transaction is expected to close by the fourth quarter of 2025, subject to customary closing conditions, including regulatory approvals [1].

SmartRecruiters is known for its expertise in high-volume recruiting, recruitment automation, and AI-enabled candidate experience and engagement. Its powerful, user-friendly interfaces and seamless workflows will complement SAP’s robust HR tools, making applicant tracking and candidate screening more efficient. Embedded analytics and AI-driven recommendations from both companies will provide rich insights into talent pools, hiring bottlenecks, and workforce planning [1].

The acquisition will strengthen SAP’s all-in-one HCM suite, so customers have the tools they need to attract and retain top talent in an increasingly competitive landscape. Muhammad Alam, member of the Executive Board of SAP SE, SAP Product & Engineering, stated, “Hiring the right people is not just an HR priority – it’s a business priority. With this planned acquisition, we will help our customers attract and hire the best talent so they can advance their talent acquisition agendas with speed and agility, while lowering their total cost of ownership” [1].

SmartRecruiters’ software-as-a-service (SaaS) solutions and platform enable more than 4,000 organizations globally to efficiently manage their hiring workflows end-to-end. The acquisition will allow customers of both companies to quickly take advantage of the moment, especially as the potential of AI in the talent acquisition space is very exciting [2].

The transaction is expected to close in the fourth quarter of 2025, pending regulatory approvals. Financial terms were not disclosed. J.P. Morgan served as the exclusive financial advisor to SmartRecruiters [1].

References:
[1] https://news.sap.com/2025/08/sap-to-acquire-smartrecruiters/
[2] https://hrexecutive.com/sap-to-acquire-smartrecruiters-growing-its-talent-acquisition-capabilities/