The German business software manufacturer SAP has agreed to acquire its smaller competitor Sybase for $5.25 billion. According to the agreement announced on Wednesday, which still requires approval from shareholders and regulatory authorities, SAP will pay $65 per share of Sybase.
According to the agreement announced on Wednesday, which still requires approval from shareholders and regulatory authorities, SAP will pay $65 per share of Sybase, or 56 percent more than the $41.57 it closed at on Tuesday. This move, in line with the ongoing trend of consolidation in the business technology sector, will enable SAP to offer a much broader range of software to clients, in a segment where market leader Oracle currently has a strong advantage. The technology that Sybase possesses is a good complement to SAP’s offerings due to its significant capabilities in the mobile services segment. "We are opening up a new large market for mobile devices with real-time internet access," said SAP CEO Bill McDermott announcing the agreement via conference call. (H)
