SAP Will Acquire Sybase for $5.8b

Sybase will continue to operate on a standalone basis after the acquisition, which SAP says will create synergistic benefits for both companies.

SAP America, the U.S. subsidiary of Walldorf, Germany-based SAP has signed a definitive agreement to acquire Sybase (Dublin, Calif.). SAP America will make an all cash tender offer for all of the outstanding shares of Sybase common stock at $65.00 per share, representing an enterprise value of approximately $5.8 billion, according to an SAP news release.

Sybase will continue to operate on a standalone basis post merger, and both companies will benefit from synergies across product lines and markets, according to SAP's announcement. Sybase's board of directors has unanimously approved the transaction.

An SAP press release predicts that SAP will accelerate the reach of its solutions across mobile platforms and drive forward the realization of its in-memory computing vision. That in turn will drive higher user adoption of SAP software and unlock significant business value out of existing customer investments, the text of the release says. In addition, the text continues, Sybase’s innovative mobile platform can connect all applications and data (SAP and non-SAP) and enable them on mobile devices. SAP, Sybase and their customers will be able to tap into Sybase’s messaging network to reach 4 billion mobile subscribers through 850+ operator relationships worldwide and engage their consumers via alerts, transactions and promotions on their mobile devices.

For Sybase, SAP in-memory technology will provide the opportunity for dramatic performance improvements to its analytic processing capabilities, according to the SAP news release. Sybase will also be able to bring its complex event processing and analytics expertise, which was built in the financial sector, to customers in other industries, markets and product areas in which SAP has a complementary, strong presence, the announcement asserts. Finally, Sybase’s core database business will be enhanced by SAP in-memory technology to deliver integrated transactional and analytical capabilities, according to SAP.

“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,” comments Bill McDermott, co-CEO of SAP and member of the company's executive board. “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. With SAP’s customer-centric approach, we are resolute in our commitment to support Sybase customers to be best-run businesses.”

Anthony O'Donnell has covered technology in the insurance industry since 2000, when he joined the editorial staff of Insurance & Technology. As an editor and reporter for I&T and the InformationWeek Financial Services of TechWeb he has written on all areas of information ... View Full Bio