SAP SE, Europe’s most valuable tech firm, is acquiring United States-based hiring platform SmartRecruiters as it deepens its footprint in the human resources software market.

The Germany-based software giant announced the deal on Friday but did not disclose financial terms.

The acquisition is expected to close in the fourth quarter of 2025.

SmartRecruiters, headquartered in San Francisco, specializes in high-volume hiring and recruitment automation.

The company was last valued at $1.5 billion in a 2021 funding round led by Silver Lake Waterman.

The move underscores SAP’s continued shift toward cloud-based services, a strategy championed by CEO Christian Klein since taking over in 2019.

Under Klein’s leadership, SAP has prioritized smaller, targeted acquisitions to enhance its cloud capabilities, including recent purchases of Signavio, LeanIX, and WalkMe — the latter bought for $1.5 billion in 2024.

SAP said the U.S. remains its largest market, contributing more than 30% of total revenue.

The company’s ascent to Europe’s top market valuation has been largely driven by its growing cloud revenue, which typically yields higher long-term spending per customer but requires lengthy, complex migrations from legacy systems.

The acquisition of SmartRecruiters is expected to bolster SAP’s SuccessFactors suite and accelerate the company’s strategy to provide end-to-end HR solutions in the cloud.