TopTier has been a partner of SAP since 1999 and parts of its technology are already integrated and available within the SAP enterprise portal offering, the mySAP Workplace.
Under the terms of the agreement, SAP will acquire all of the outstanding shares of TopTier for approximately $400 million in cash. TopTier will become a wholly-owned subsidiary of SAP upon closing, which is expected to occur during the second quarter of 2001, subject to customary closing conditions. TopTier generated approximately $20 million of revenue in 2000. SAP anticipates recording a charge resulting from acquired in-process research and development that will not exceed $50 million. Excluding this one-time charge and the amortization of goodwill and other intangibles acquired, SAP expects the acquisition to have minimal impact on 2001 earnings per share.
This transaction is a further step in SAP’s strategy, which includes building market-leading positions in the enterprise portal, customer relationship management, supply chain management and marketplace sectors. This acquisition strengthens SAP’s leadership in the enterprise portal market and increases SAP’s ability to broaden its user base. The acquisition will also provide SAP with a strong engineering staff experienced in the portal market and a large installed base of enterprise customers, including Daimler Chrysler, Hewlett Packard, GMAC, Universal Studios and Wells Fargo Bank.
The TopTier technology fits seamlessly with the mySAP Workplace. The mySAP Workplace enterprise portal integrates mySAP e-business solutions and non-SAP components to deliver up-to-date, role-based information, applications and services that people need to perform their everyday jobs. TopTier technology enables further integration of heterogeneous applications beyond those of SAP.
