A spokesman for German based company SAP said: “We saw that the Pandesic business model could not be profitable in the necessary period of time. Pandesic will be shut down.” Pandesic LLC, the company set up by the joint venture, blamed slower than anticipated market acceptance of business-to-consumer e-commerce solutions.
Pandesic employs approximately 400 employees and has offices in the UK, the US and Japan. Employees are to be offered a severance package and assistance to find new positions.
The announcement helped raise SAP’s share price by about 2%, the market perceiving the closure of the joint venture as a good decision.