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SAP says SuccessFactors’ solutions will complement its own Cloud-based products (Photo: SuccessFactors)

SAP is buying human-resources specialist SuccessFactors in a move to strengthen its Cloud-based services offering.

The German business software maker said it is paying 3.4 billion dlrs for the provider of cloud-based human capital management solutions.

SAP said the acquisition will "significantly" accelerate its momentum as a provider of cloud applications, platforms and infrastructure.

"The cloud is a core of SAP’s future growth, and the combination of SuccessFactors’ leadership team and technology with SAP will create a cloud powerhouse," Bill McDermott, Co-CEO of SAP, said in a press release. "The acquisition will help us address the top priority for CEOs globally ”“ managing people and talent.”

The SuccessFactors board of directors has already approved the transaction, but the closing of the tender offer is conditional on a majority of the company's shareholders approving it as well. The transaction also still needs regulatory approval, but the companies expect it to close in the first quarter of 2012.

SAP said the acquisition of SuccessFactors falls into its strategy of delivering products on premises, in the cloud and on mobile devices. It said SuccessFactors' products are "highly complementary" to SAP's core HR offerings and to its Cloud-based services.

Lars Dalgaard, founder and CEO of SuccessFactors, said being acquired by SAP will speed up the development of his company by 1o years. "The business world is ready for enterprise-class cloud applications and together, we can deliver incredible new innovation for global businesses,” he said.

Upon completion of the transaction, Dalgaard will lead the cloud business of SAP in addition to his responsibility as CEO of SuccessFactors, SAP said. SuccessFactors will remain an independent company within the SAP Group.

SAP is the world's biggest provider of business software. It has more than 176,000 customers worldwide.

SuccessFactors has 15 million subscription seats for its products and has more than 3,500 customers in 168 countries.