SAP has announced plans to acquire cloud-based business software provider SuccessFactors for $40 per share, a 52 percent premium over the company’s closing price of $26.25 on December 2. The deal is worth $3.4 billion.

SuccessFactors provides online tools for managing employee performance, including performance management, setting goals and managing to them, setting compensation accordingly, and training. Its stated mission is to make each customers “a more meritocratic place to work, where promotion and pay is based on performance and not politics.”

By acquiring SuccessFactors, SAP — a giant in legacy enterprise software — is making a big move to establish a presence in cloud services. It will have major challenges integrating SuccessFactors into its complex array of enterprise offerings, however.

via SAP acquires SuccessFactors for $3.4 billion | VentureBeat.