Qualtrics Buys PG Forsta for $6.75 Billion

Experience management specialist Qualtrics has announced the acquisition of research and experience measurement software firm Press Ganey Forsta, for $6.75 billion in a combination of cash and equity.

Qualtrics was an early mover in the DIY research software market, before expanding into other areas of experience management - it now provides solutions for clients to continually assess and improve the four 'core experiences': Customer, Employee, Product and Brand. The firm stunned the MR and analytics world in 2018 when software giant SAP paid $8bn in cash to acquire it, marking a rapid rise to become one of the sector's most valuable companies. SAP sold a share in the firm in an IPO in 2020, leading to its value rising briefly to $15.3bn - but retained a majority stake. The firm has since been acquired by investors for around $12.5bn - in 2023 - and taken private.

Press Ganey Forsta (also known as PG Forsta) was formed in 2022 when research tech pioneer Forsta - itself a combination a year earlier of software firms Confirmit and FocusVision - was acquired by healthcare experience specialist Press Ganey. The combined entity offers tech and expertise to help clients in healthcare, financial services, technology and other sectors understand the experiences of their audiences and customers, via its HX (Human Experience) Platform. Since buying CX technology firm InMoment in May this year, the company has a headcount of around 3,000.

Qualtrics says the acquisition will create 'the most complete AI platform specialized for customer experience, patient experience, employee experience, and market research.' The company points to rapid customer adoption of its AI features - including Conversational Feedback, Qualtrics Assist, its synthetic research platform Edge Audiences, and Experience Agents - and says this will be accelerated by the addition of PG Forsta's specialized industry expertise, data and benchmarking, trusted relationships, and advisory services.

The acquired company has a strong presence in the healthcare market, boasting a user base of 41,000 providers in 30 countries, tapping its expertise to take actions in compliance with regulatory requirements and clinical protocols. Combining this with Qualtrics' technology platform willm the firm says, help healthcare providers to deliver patient and employee experiences leading to improved health outcomes, provider well-being, retention and morale.

'Bringing Qualtrics and Press Ganey Forsta together will accelerate the adoption of AI and create the most comprehensive platform for improving the human experience,' states Qualtrics CEO Zig Serafin (pictured). 'There's no more important proving ground for experience management than healthcare, where better experiences for patients and employees directly impact better outcomes and quality of care. We're excited to welcome Press Ganey Forsta to Qualtrics and deliver this future together.'

Patrick T. Ryan, Chairman and CEO of Press Ganey Forsta, comments: 'AI is rapidly transforming every industry, and organizations need proven, innovative solutions grounded in deep expertise to move from insight to impact faster. This investment ignites our ability to deliver. By bringing together two leading companies, we're accelerating critical advancements that will elevate the human experience, driving greater safety, trust, and value for millions of patients, consumers, and employees worldwide. It's a remarkable opportunity, and we're energized by the journey ahead with Qualtrics and our clients.'

The transaction is expected to close 'in the coming months', subject to receipt of the required regulatory approvals and meeting other customary closing conditions. In the meantime the two companies will continue to operate independently. Their web sites are at www.qualtrics.com and www.pgforsta.com .