Krystal Hu, Emma-Victoria Farr

LONDON (Reuters) – German software firm SAP is working with investment bank Moelis (NYSE:) & 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. Sources say Litmos, a California-based software company, could be sold for more than $1B. They requested anonymity as the matter is confidential.

According to two sources, Moelis expects to begin an auction process over the coming weeks. The auction will focus mainly on tech-focused private equity fund in Europe and America. Moelis and SAP representatives declined to comment.

In 2018, SAP purchased Litmos, a U.S.-based cloud software company Callidus for $2.4 billion in an agreement worth $2.4 billion. It provides corporate learning platforms and has been used by over 30 million users in 150 countries. According to the website.

According to sources, Litmos was now considered a noncore asset. Luka Mocic, SAP Chief Financial Officer, stated in an analyst conference that SAP wanted to streamline its operations so it could focus on growth drivers.

Moelis assisted SAP in a prior disposal, when SAP sold Digital Interconnect (SDI), a German software company to Sinch, for approximately $250 million.