SAS CEO Jim Goodnight tells employees ‘we are not for sale’ despite Broadcom’s overture

In a companywide email on Tuesday, SAS Institute CEO Jim Goodnight told employees that the software company was not for sale — after it was reported earlier in the week it had been in talks with the semiconductor company Broadcom.

The potential sale of SAS would have presented a huge change to the company, which has remained privately held since it was founded by Goodnight in 1976.

In an emailed statement, Shannon Heath, a spokeswoman for the company, confirmed that Goodnight, 78, told staff the company wasn’t for sale.

“I can confirm that Dr. Goodnight sent a message to all employees, in which he said: ‘We are not up for sale,’” she told The News & Observer.

“SAS remains focused on furthering innovation to serve our customers,” she added.

The company said Goodnight, who controls a large stake in the company with his co-founder John Sall, was not available for an interview.

The Wall Street Journal reported on Monday that SAS had been in talks with Broadcom, and that a deal could be completed in a matter of weeks. The deal could have valued SAS, which makes widely used analytical software, at $15 billion to $20 billion.

On Tuesday, The Wall Street Journal also reported that Goodnight had decided not to sell and talks had stopped.

SAS employs around 5,000 people at its headquarters in Cary, and thousands more in offices across the globe. News of a potential acquisition led to worries a different owner could cut costs at the firm by laying off employees.

“(T)here is always the possibility some or all of the functions could be moved to another tech center by a new owner,” retired N.C. State University economist Michael Walden said of SAS’s potential sale. “Although the Triangle will still continue to grow — especially in technology — any significant job and operational losses would be a setback for the region.”

The company, whose customers include large banks and government agencies, posted revenues of $3 billion last year, according to its most recent annual report. However, that represented a decline in revenue of 2% to 3% from 2019.

In an interview earlier this year, Bryan Harris, the company’s chief technology officer, said SAS anticipates revenue growth returning this year.

“Obviously 2020 was a tough year, and a lot of people were kind of protecting where they were at,” he told The N&O in May. “But we’ve had a very strong first quarter here, coming out with very significant improvements in revenues.”

But the approach by Broadcom also came as SAS had lost several key executives during the pandemic.

In January, Oliver Schabenberger left his job as the No. 2 at SAS.

Schabenberger, who was considered the heir apparent to Goodnight, left his role as chief technology officer and chief operating officer to join a the growing startup SingleStore, The N&O reported.

Randy Guard, who was SAS’ chief marketing officer until last year, also decamped to a startup. He now holds the same role for Durham-based fintech startup Spreedly.

This story was produced with financial support from a coalition of partners led by Innovate Raleigh as part of an independent journalism fellowship program. The N&O maintains full editorial control of the work. Learn more; go to bit.ly/newsinnovate.

This story was originally published July 13, 2021 at 5:48 PM.