NEW YORK (TheStreet) -- SAP (SAP - Get Report) plans to purchase SuccessFactors (SFSF) for $3.37 billion, the companies announced Saturday.

The German enterprise applications software giant will pay $40 in cash for each share, a 52% premium to SuccessFactors' closing price Friday of $26.25.

SuccessFactors provides cloud-based employee-management applications.

"The combination of SAP and SuccessFactors will establish an advanced end-to-end offering of cloud and on-premise solutions for managing all relevant business processes," the companies said Saturday in a news release.

SuccessFactors' board has already approved the deal, which the companies expect to close in the first quarter of 2012.

> > Bull or Bear? Vote in Our Poll

SAP plans to fund the acquisition with cash on hand, and with a 1 billion euro ($1.34 billion) term loan facility, the release said.

Shares of SAP closed Friday down 47 cents at $59.54.

This article was written by a staff member of TheStreet.