Advertisement
News
Advertisement

SAP buying Sybase for $5.8B

Wed, 05/12/2010 - 2:30pm
JORDAN ROBERTSON - AP Technology Writer - Associated Press

German business software maker SAP AG has agreed to buy Sybase Inc. in a $5.8 billion deal that ratchets up SAP's rivalry with database leader Oracle Corp.

The all-cash deal intensifies the battle between SAP and Oracle to run more of the programs that corporations use to manage their data. Oracle, the world's leading database maker in a market where Sybase is a small player, has been on a buying binge in an attempt to take business in other areas from SAP.

SAP says the acquisition will also give it key technology from Sybase that lets business programs run on mobile phones.

SAP is offering $65 for each outstanding share of Sybase's common stock. Sybase's stock hadn't closed above $50 per share since the mid-1990s.

Before the announcement, shares of Sybase rose 35 percent to $56.14 on rumors of the deal. In extended trading, stocks rose an additional 15 percent to $64.30.

The deal is expected to close in the third quarter, provided it is cleared by antitrust regulators. SAP, based in Walldorf, Germany, said the deal will immediately add to SAP's earnings. Sybase is headquartered in Dublin, Calif.

Advertisement

Share this Story

X
You may login with either your assigned username or your e-mail address.
The password field is case sensitive.
Loading