Sybase Acquired By SAP
By Arnab Ghosh, Gaea News NetworkThursday, May 13, 2010
GERMANY (GaeaTimes.com)- Germany-based SAP AG is acquiring California based Sybase, a smaller business software maker for a whopping $5.8-billion deal as it has been confirmed by the former company. This is likely the second biggest acquisition in the history of the Waldorf based technology giant. Prior to this SAP acquired Business Objects two years back for an amount of $6.8 billion. As per the agreement between the two companies SAP will be paying Sybase $65 for each share. SAP will also take care of the $400 million debt incurred by the other company. The deal is likely to be complete by the third quarter of this year. This move by SAP marks its entry into database software segment where it will lock horns with longtime rival Oracle.
It has been announced that Sybase will function as a stand-alone unit owned by SAP and the existing management of the former will also be retained. The industry insiders are of the opinion that SAP has realized that acquisition of smaller companies is essential for extending its services and operations. It needs to be noted that Oracle spent an amount of $42 billion to take over 60 companies and Sun Microsystems was among those entities.
The industry experts think that the Sybase acquisition will give SAP an edge over competitor Oracle. SAP will be able to offer the customers mobility an area where Oracle has not made foray yet. Jim Hagemann Snabe, the co CEO of SAP said that the company wants SAP solutions to be accessed from mobile devices and the Sybase acquisition will pave the way for that.
