SAP Acquires SmartRecruiters for Strategic Cloud Expansion

SAP has agreed to acquire San Francisco-based HR software firm SmartRecruiters. The deal is expected to close in Q4, but terms were not disclosed. SmartRecruiters specializes in high-volume recruiting and recruitment automation. SAP is Europe's most valuable company, with the US accounting for over 30% of its revenue. The acquisition is part of SAP's efforts to move customers to the cloud, where spending per client is higher.

SAP (NYSE: SAP), a global leader in enterprise applications and business AI, has agreed to acquire San Francisco-based HR software firm SmartRecruiters. The deal is expected to close in the fourth quarter of 2025, subject to customary closing conditions, including regulatory approvals. Terms of the transaction were not disclosed [1].

SmartRecruiters specializes in high-volume recruiting and recruitment automation, offering AI-powered solutions that automate and optimize the entire talent acquisition process. The company's platform is used by more than 4,000 organizations globally, including Amazon, Visa, and McDonald's [2].

The acquisition aligns with SAP's strategy to move customers to the cloud, where spending per client is higher. SAP's human capital management (HCM) suite, SAP SuccessFactors, will be strengthened by SmartRecruiters' capabilities, providing customers with a more comprehensive and efficient talent acquisition solution. The combined offering will enable customers to manage the entire candidate lifecycle, from sourcing and interviewing to onboarding and beyond, all within a single system [1].

SAP's Executive Board member Muhammad Alam 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' CEO Rebecca Carr expressed enthusiasm for the opportunity, noting, "SmartRecruiters' mission has always been to make hiring easy. Joining forces with SAP presents a tremendous opportunity for enterprises worldwide to benefit from our industry-leading approach to talent acquisition" [1].

The acquisition is part of SAP's broader strategy to expand its cloud-based offerings and enhance its HCM capabilities. By integrating SmartRecruiters' innovative talent acquisition portfolio, SAP aims to provide customers with more robust and efficient HR tools.

References:
[1] https://news.sap.com/2025/08/sap-to-acquire-smartrecruiters/
[2] https://www.morningstar.com/news/pr-newswire/20250801ln42367/sap-to-acquire-smartrecruiters-integrating-innovative-talent-acquisition-portfolio-will-help-customers-attract-and-retain-top-talent