SAP can take over LeanIX

The Bundeskartellamt has cleared the planned acquisition of LeanIX GmbH (LeanIX), Bonn, by SAP SE (SAP), Walldorf, in the first phase of merger control. The authority’s investigations had shown that the merger was not expected to significantly impede effective competition.

Andreas Mundt, President of the Bundeskartellamt: “SAP has so far not offered its own software solutions in the area of Enterprise Architecture Management software and will expand its product portfolio accordingly as a result of the planned acquisition. We have cleared the takeover after carefully examining SAP’s strong position in the German market. Our examination focused on the question whether the new product bundle would allow SAP to impede competition. However, we did not find sufficient indications suggesting that this would be the case.”

SAP is a major provider of Enterprise Application Software (EAS). The company is particularly strong in the area of Enterprise Resource Planning (ERP) software. LeanIX is a German company which offers B2B software solutions in the area of Enterprise Architecture Management (EAM). With LeanIX’s software-as-a-service solutions, companies can obtain an overview of their current IT landscape and visualise, assess and manage the transition towards their target IT architecture. In the future SAP plans to (also) offer LeanIX’s software together with other SAP products as part of a solution suite for digital transformation.

The parties’ products are complementary. The Bundeskartellamt examined in particular whether a bundle of LeanIX and SAP software products could impede competition in the area of EAM. The authority did not find sufficient indications suggesting that this would be the case. There are many providers competing in the EAM market, which is dynamic and shows considerable growth rates. SAP’s customers will still be offered a choice of different EAM products in the future. SAP is not expected to be able to oust a significant amount of competitors as a result of a bundling strategy. 

The Bundeskartellamt also examined whether and to what extent SAP will have access to and be able to use data on the IT landscapes of LeanIX’s customers. The investigation has shown, however, that the merger is not likely to result in a significant impediment to effective competition on the ERP market.