SAP Plans To Divest Profitable Corporate Learning Software Business: Reuters

German software firm SAP SE ADS SAP is working with investment bank Moelis & Company MC to divest its corporate learning software business Litmos, Reuters reports.
CEO Christian Klein looks to move towards subscription-driven services and increase cloud-based revenue.
The report noted the sale of the profitable California-based Litmos could fetch a valuation of more than $1 billion.
Moelis aims to start an auction process in the coming weeks and mainly targets tech-focused private equity funds in the U.S. and Europe.
SAP looks to streamline its operations and focus on cloud-based revenue.
SAP acquired Litmos as part of its acquisition of U.S. cloud software firm Callidus for $2.4 billion in 2018.
The business provides learning platforms to corporate clients to develop sales and customer service.
The report noted that Litmos overlaps with SAP SuccessFactors, a learning platform in the human experience management suite SAP promotes.
Price Action: SAP shares closed lower by 2.35% at $100.00 on Tuesday.