December 4, 2011 / 12:13 AM / 7 years ago

JP Morgan arranges loan for SAP's SuccessFactors buy

BOSTON/FRANKFURT (Reuters) - JPMorgan Chase & Co is arranging the 1-billion-euro ($1.34 billion) loan that SAP AG is taking on to help pay for its $3.4 billion takeover of SuccessFactors, SAP co-Chief Executive Bill McDermott told Reuters.

“The 1 billion will probably be paid down within about a year. That’s how we usually like to do it,” McDermott said in an interview on Sunday, a day after announcing the takeover.

The deal, in which SAP is paying a premium of 52 percent over Friday’s closing price of SuccessFactors shares, is a major push into cloud-computing services for the German business software company.

McDermott also said the deal could help the company beat its 2015 revenues target of 20 billion euros by as much as 1 billion.

“We had cloud figured out in our 20 billion. We are now upping that 20 billion. It could easily go to 21 billion,”

he said.

Reporting by Jim Finkle in Boston and Maria Sheahan in Frankfurt; Editing by Jan Paschal

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