SAP SE has reached an agreement to acquire Reltio Inc., a prominent leader in master data management (MDM) software, to bridge the gap between fragmented enterprise data and the high-performance requirements of modern artificial intelligence (AI).

The acquisition marks a significant milestone in SAP’s AI-First and Suite-First strategy. By integrating Reltio’s technology, SAP aims to transform its Business Data Cloud (SAP BDC) into a fully interoperable platform capable of supporting agentic AI. Financial terms of the deal were not disclosed.

In today’s corporate environments, data is often trapped in silos across different departments and platforms. According to Muhammad Alam, member of the executive board of SAP SE, fragmentation is the primary hurdle for AI adoption.

“AI cannot reach its full potential when data is fragmented across business units and domains without connection or context,” Alam said. “Acquiring Reltio will further improve our position as a leading business AI provider, combining SAP and non-SAP data to deliver the data context that business AI requires.”

Reltio’s platform specializes in entity resolution, using AI to identify and merge related records from various formats into a single, reliable “golden record.” This ensures that AI assistants, like SAP’s Joule, operate on high-quality, consistent information regarding customers, products, and suppliers.

A standout feature of the acquisition is Reltio’s support for the Model Context Protocol (MCP). This allows for low-latency, real-time workflows where AI agents, such as those used in procurement, can assess risks and trigger actions instantly across a heterogeneous IT landscape.

Manish Sood, founder and CEO of Reltio, noted that joining SAP accelerates the mission to provide a system of context that remains open and interoperable.

“Enterprise AI needs trusted context that is open across the heterogeneous IT landscapes our customers run,” Sood said.

SAP plans to offer Reltio as a core capability within the SAP Business Data Cloud. However, acknowledging the diverse needs of the market, SAP confirmed that Reltio’s portfolio will remain available as a standalone offering for the foreseeable future. This includes Reltio’s velocity packs, which provide prebuilt data models for specialized sectors like healthcare and financial services.

The transaction is expected to close in the second or third quarter of 2026, pending customary regulatory approvals and closing conditions.