Fieldglass acquisition furthers SAP’s push into internet-based applications

SAP has agreed to acquire Fieldglass, a US software supplier that specialises in managing contract workforces, furthering the German company’s push into internet-based applications.

Fieldglass, whose programmes help businesses oversee contract employees and projects, would complement earlier acquisitions of personnel software supplier SuccessFactors and online marketplace Ariba, Walldorf, Germany-based SAP said.

Closely-held Fieldglass in 2010 received an investment from private-equity firm Madison Dearborn Partners LLC valuing the Chicago-based company at more than $220 million (€159m).

The deal is the latest in a string of takeovers by co-chief executives Bill McDermott and Jim Hagemann Snabe over the past four years in an attempt to vault SAP into the expanding market for cloud-computing tools delivered to customers online.

SAP, whose software is installed on thousands of companies’ servers and data centres, and Oracle Corp, its biggest rival in traditional enterprise software, have also been using acquisitions to challenge cloud-only providers such as Salesforce.com Inc. and Workday Inc.

Fieldglass, led by co-founder and chief executive Jai Shekhawat, employs about 350 workers. SAP said it expects the transaction to be completed in the second quarter.