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Market Update

SAP Buys Callidus Software, Informa, UBM Merger to Shape Event Industry


Author: Sarla Buch
ticker.com
Last Update: 10:19 AM EST January 30 2018

4:00 PM Frankfurt Loomis annual profit missed estimates. Philips Electronics reported higher profit. Siemens Gamesa held out for positive outlook in India. SAP plans to acquire Callidus in $2.4 billion. UBM agreed to be acquired by Informa for 3.9 billion.

In London trading, FTSE 100 index dropped 52.45 or 0.7% to 7,619.08 and in Frankfurt the DAX index declined 112.58 or 0.8% to 13,211.92.

In Paris, CAC 40 index slumped 27.28 or 0.5% to 5,494.30.

Loomis AB plunged 8.6% to 301.60 Swedish kronor after Sweden-based cash handling services provider reported total revenues in the year ending in December jumped 3% from a year ago to 17.2 billion kronor.

Net income in the quarter soared 13.5% to 1.4 billion kronor from 1.3 billion kronor in a year ago period and diluted earnings per share advanced to 18.99 kronor from 16.73 kronor.

Koninklijke Philips NV declined 4.5% to 32.41 after the Netherlands-based health technology provider reported revenues in the year ending in December rose 2.3% from a year ago to 17.8 billion.

Net profit in the period surged 14.5% to 1.7 billion from 1.5 billion in a year ago period and diluted earnings per share jumped to 1.75 from 1.56.

""We expect our markets to grow between 3% and 5% on a comparable basis in 2018,"" said chief executive officer Frans van Houten.

Siemens Gamesa Renewable Energy SA soared 4.9% to 12.82 after Spain-based wind turbine maker said revenues in the first-quarter ending in December declined 23% from a year ago to 2.1 billion and net income tumbled 87% to 35 million.

The wind-turbine maker said it estimated markets in India had trouble in 2017 which will stabilize in 2018 and return to normal in 2019.

SAP SE dropped 1.7% to 90.55 after Germany-based software and service provider said its U.S.-based unit SAP America Inc plans to acquire cloud-based human resources software maker Callidus Software Inc for about $2.4 billion.

The enterprise application software developer reported revenues in the year ending in December soared 6% from a year ago to 23.5 billion.

Net profit in the period jumped 10% to 4 billion from 3.6 billion in a year ago period and diluted earnings per share advanced to 3.35 from 3.04.

Separately today, SAP forecasted fiscal 2018 revenues in the cloud business to jump between 27% and 33% or in the range of 4.8 billion to 5 billion.

SAP also estimated fiscal 2018 total revenue growth in the range of 24.6 billion to 25.1 billion and operating profit to be in a range of 7.3 billion to 7.5 billion.

UBM Plc jumped 4.4% to 907.50 pence after the U.K.-based event organizer agreed to be acquired by domestic larger rival Informa Plc for about 3.90 billion or $5.47 billion.

Under the terms, shareholders of UBM will receive 1.083 new Informa shares and 163 pence in cash.

The transaction is expected to close in the second-quarter of 2018.

Separately today, UBM forecasted fiscal 2017 total group revenue of about 1 billion form a year ago period.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc