SAP talks about acquiring a cloud startup backed by Apax Signavio

Photographer: Balint Forenzi / Bloomberg

SAP SE is in talks to acquire German enterprise software company Signavio as it seeks to expand its cloud offering, people with knowledge said.

According to the people, who asked not to be identified because the information is private, an agreement could be announced for the purchase of Signabio in Berlin. A deal could cost Signabio, whose supporters include Apax Partners, at about a billion euros ($ 1.2 billion), the people said.

The SAP share rose 0.6% at 16:44 in Frankfurt, giving the company a market capitalization of about 129 billion euros. Negotiations are ongoing, and discussions can still take longer or fall apart, the people said.

Representatives of SAP and Apax declined to comment, while a Signabio spokesman did not immediately respond to a request for comment.