21 October 2017
Register now

SAP agrees $5.8bn Sybase acquisition

13 May 2010  |  6837 views  |  0 handshake

SAP has agreed a $5.8 billion cash deal to buy database outfit Sybase in a move the German giant says will help it deliver its technology over mobile phones.

The firms have inked a definitive merger agreement that will see SAP offer $65 a share, a 44% premium over the three-month average stock price of Sybase. The transaction will be funded from SAP's cash on hand and a EUR2.75 billion loan facility arranged and underwritten by Barclays Capital and Deutsche Bank.

Founded in 1984, California-based Sybase has a strong financial services customer base for its database and mobile technology. The vendor claims 24 of the top 25 global banks rely on it to deliver intra-day risk analysis.

Recently the company has also made aggressive moves into the complex event processing (CEP) market. Last year it launched its own CEP engine using source code licensed from San Francisco-based Coral8 and this was followed by the acquisition of Aleri.

SAP says the acquisition provides it with key technology that enables it to deliver its software over smartphones. This will gain it new business and "unlock significant business value out of existing customer investments", claims the vendor.

The buyer and its customers will also be able to tap into Sybase's messaging network to reach four billion mobile subscribers through over 850 operator relationships worldwide, engaging their clients via alerts, transactions and promotions on their handsets.

In addition, SAP says the CEP expertise it is acquiring - initially built in the financial sector - will be marketed to customers in other industries and product areas.

For Sybase, SAP in-memory technology will provide the opportunity for dramatic performance improvements to its analytic processing capabilities, say the firms.

Under the agreement, Sybase will operate as a standalone business, called Sybase, an SAP company, with its current management team kept in place, with founder John Chen joining the SAP executive board.

The deal, already unanimously approved by the Sybase board, is expected to close in the third quarter and will be immediately accretive to SAP's earnings per share on a non-IFRS adjusted basis.

Bill McDermott, co-CEO, SAP, says: "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: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Sybase confirms Aleri acquisition

Sybase confirms Aleri acquisition

04 February 2010  |  13424 views  |  2 comments
Is Sybase set to acquire Aleri? - sources

Is Sybase set to acquire Aleri? - sources

01 February 2010  |  6354 views  |  0 comments
Deutsche Bank taps SAP for German core banking overhaul

Deutsche Bank taps SAP for German core banking overhaul

27 January 2010  |  9824 views  |  0 comments
SAP hires ex-Barclays CIO Trotta

SAP hires ex-Barclays CIO Trotta

21 October 2009  |  7854 views  |  0 comments
Sybase launches complex event processing (CEP) platform

Sybase launches complex event processing (CEP) platform

16 March 2009  |  9710 views  |  0 comments
Sybase moves into m-payments with paybox acquisition

Sybase moves into m-payments with paybox acquisition

21 January 2009  |  7812 views  |  0 comments
SAP signs HSBC to NetWeaver

SAP signs HSBC to NetWeaver

17 September 2008  |  6174 views  |  0 comments
Sybase launches capital markets risk analytics platform

Sybase launches capital markets risk analytics platform

24 May 2005  |  4855 views  |  0 comments

Related company news


Related blogs

Create a blog about this story (membership required)
visit www.atos.netvisit www.vasco.com

Top topics

Most viewed Most shared
HSBC partners Bud for open banking trialHSBC partners Bud for open banking trial
9840 views comments | 22 tweets | 26 linkedin
satelliteGates Foundation backs Ripple collaboratio...
8918 views comments | 13 tweets | 10 linkedin
Mastercard to roll out blockchain APIMastercard to roll out blockchain API
8511 views comments | 16 tweets | 19 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
8016 views comments | 9 tweets | 17 linkedin
Sibos 2017: API or the highwaySibos 2017: API or the highway
7660 views comments | 10 tweets | 22 linkedin

Featured job

Competitive base, double ote, benefits
London, UK

Find your next job