SAP is buying Utah-based startup Qualtrics for $8 billion - days before it's scheduled to IPO

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Qualtrics CEO Ryan Smith will keep his job after SAP's acquisition closes.

• SAP has announced its intent to buy Qualtrics for $8 billion.
• Qualtrics is a Utah-based startup that helps companies gather feedback and refine their products.
• Qualtrics, which was last valued at $2.5 billion, was just days away from its IPO.
• That IPO could have valued the company at $5 billion or more, right out of the gate.

SAP, the German database giant, has announced an $8 billion all-cash deal to acquire Utah-based Qualtrics, a startup last privately valued at $2.5 billion.

Notably, Qualtrics was scheduled to hold its IPO this week - an offering that could have valued the company at more than $5 billion right out of the gate, according to the company's most recent filings. The deal is expected to close in the first half of 2019.

Qualtrics specializes in what it calls experience management, or XM, providing tools to help companies gather feedback and optimize their products.

After the close of the deal, Qualtrics will maintain its existing headquarters in Seattle, Washington, and Provo, Utah. Qualtrics CEO Ryan Smith will continue in his role, as well.

This deal comes shortly after IBM announced its intent to purchase open source software provider Red Hat for $34 billion. Microsoft, too, just closed its $7.5 billion acquisition of code sharing service GitHub, making this a banner year for M&A action in the business-to-business tech sector.