A visitor passes the SAP SE logo at the company's headquarter campus site in Walldorf, Germany, on Jan. 28, 2020.Photo:cfp

German software firm SAP is working with investment bank Moelis & Co to sell its corporate learning software business Litmos as it seeks to streamline its operations and focus on cloud-based revenue, three sources told Reuters.

The sale of California-based Litmos, which is profitable, could fetch a valuation of more than $1 billion, said the sources, who requested anonymity because the matter is private.

Moelis is expected to start an auction process in the coming weeks and will mainly target tech-focused private equity funds in the US and Europe, two of the sources said.

Representatives at SAP and Moelis declined to comment.

SAP bought Litmos as part of its acquisition of US cloud software firm Callidus for $2.4 billion in 2018, rebranding the platform SAP Litmos.

The business provides learning platforms to corporate clients to develop sales and customer services, and is used by more than 30 million people in 150 countries and regions, according to its website.

The sources said Litmos overlaps with SAP SuccessFactors, a learning platform in the human experience management suite SAP promotes. While both are cloud-based solutions, Litmos is compatible with a variety of HR systems such as ADP and BambooHR, while SAP SuccessFactors is focused on training users to use its own platform.

SAP's Chief Finance Officer Luka Mucic told reporters on a recent call that SAP wants to streamline its operations -- including divestments -- in order to focus on growth drivers.

Moelis helped SAP with a previous disposal in 2020 when the German software giant sold Digital Interconnect to Swedish cloud communications firm Sinch for about $250 million.

SAP listed its experience management software business Qualtrics in the US last year, remaining its majority owner.