March 26--German technology company SAP said Wednesday it plans to buy Chicago-based Fieldglass, which makes software used by companies to manage relationships with employees, temporary workers and vendors.
Fieldglass has 350 employees, and its majority investor is Chicago-based private equity firm Madison Dearborn. Terms weren't disclosed.
"This move reaffirms SAP as the undisputed leader of integrated human resources and procurement in the cloud for businesses of all sizes and industries," SAP said in a statement. "Combining Fieldglass with SAP is a significant milestone in our strategy to help businesses simplify everything."
SAP said Fieldglass last year marked its eighth consecutive year of profitability, adding 2 million new users in markets worldwide.
Madison Dearborn had invested in Fieldglass in 2010 in a deal valued at $220 million. In a recent letter to investors, Madison Dearborn said Fieldglass, whose software has been used by such companies as Johnson & Johnson, American Airlines and GlaxoSmithKline, was a top performer for its sixth fund in 2013.
Fieldglass was founded by Chief Executive Jai Shekhawat in 1999 and survived the Internet crash. It was originally named b2bpeople.com, but later picked a new name inspired by military binoculars used to survey the terrain.
"Joining with SAP will allow us to dramatically accelerate our global growth plans and pace of innovation at the unique intersection of the human capital and procurement sectors," said Shekhawat said.
SAP said it expects to complete the deal in the second quarter of 2014.
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