SAP announces takeover of Sybase

17 May 2010

SAP, a German financial technology provider, is to acquire Sybase in a deal worth approximately $5.8 billion.

According to the technology vendor, the value of each share equates to $65 as part of the transaction, which will be funded by currently available capital and a loan worth €2.75 billion backed by Deutsche Bank and Barclays Capital.

Customers of the firms will be able to benefit from “greater productivity, speed and agility” to bolster business growth, the two companies have stated.

As a result of the merger, SAP technology solutions will be more readily available across mobile platforms while Sybase’s products will be able to connect to a range of applications for mobile handsets.

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.”

The offer of $5.8 billion is a 44 per cent premium higher than the average three month stock price for Sybase.

Sybase’s management will remain in place following the transaction while a proposal to appoint its chief executive officer and chairman to the SAP board is expected to be submitted.

By Jim Ottewill

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