German software firm SAP has agreed to acquire mobile and database software vendor Sybase, in a transaction valued at approximately $5.8bn, to enhance the reach of its offerings across mobile platforms.
Under the agreement, SAP America will make an all cash tender offer for all of the outstanding shares of Sybase common stock at $65 per share.
The companies said that as a result of the transaction, customers will be able to better harness today’s explosion of data and deliver information and insight in real time to business consumers, enabling customers to make more informed decisions.
The acquisition would enable both SAP and Sybase benefit from synergies across product lines and markets. SAP will be able to drive forward the realisation of its in-memory computing vision, driving higher user adoption of SAP software while Sybase’s mobile platform can connect all applications and data (SAP and non-SAP) and enable them on mobile devices.
For Sybase, SAP in-memory technology will provide the opportunity for performance improvements to its analytic processing capabilities. In addition, Sybase’s core database business will be enhanced by SAP in-memory technology to deliver integrated transactional and analytical capabilities.
SAP said it will continue to support each organisation’s product road map and both companies’ development organisations would remain intact, with the opportunity to cross-collaborate to increase innovation for customers. Sybase will operate as a standalone unit under the name ‘Sybase, an SAP Company.’
Bill McDermott, co-CEO of SAP and member of the SAP Executive Board, said: With this transaction, SAP will dramatically expand its addressable market by making available its market-leading solutions to hundreds of millions of mobile users, combining the world’s best business software with the world’s most powerful mobile infrastructure platform.
This is a game-changing transaction for SAP and Sybase customers, who will be better able to connect their employees with key functionality and information from anywhere and make it easier for companies to make faster, more informed business decisions in real time.
