German business software giant SAP and U.S. database software maker Sybase Inc. announced yesterday that the SAP America subsidiary has agreed to acquire Sybase Inc., offering $65 per share of Sybase common stock, a 44% premium over the three-month average price, putting the value of the enterprise at about $5.8 billion.
Sybase provides database, business-intelligence, scheduling and reporting systems to newspapers, as well as database technology supporting their editorial and advertising systems. Besides its financial/ERP systems at newspapers, SAP offers SAP for Media, combining the mySAP Business Suite with industry-specific functionality.
Forrester Research analyst Noel Yuhanna told The New York Times it could be late in the year before SAP has software that works with a Sybase database and another six months before a combined product is available.
The companies' executives reportedly are already are considering focusing on mobile applications for access to large quantities of information.
SAP will fund the transaction using cash on hand and a $3.45 billion loan facility arranged and underwritten by Barclays Capital and Deutsche Bank.
The Sybase board of directors approved the deal, and the transaction awaits the tender of a majority of outstanding shares of Sybase's common stock and regulatory clearance.
Sybase is expected to operate as a standalone unit and keep its name and management as an SAP company. The companies said they will provide Integration details after the transaction is complete.
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