SAP and Sybase announced that SAP’s subsidiary, SAP America, has signed a definitive merger agreement to acquire Sybase. SAP will make an all cash tender offer for all of the shares of Sybase common stock at $65.00 per share, representing an enterprise value of approximately $5.8 billion.
The per share purchase price represents a 44% premium over the three-month average stock price of Sybase. The transaction is expected to close during the third quarter of 2010.
The companies claim they both will benefit from synergies across product lines and markets. SAP expects to accelerate the reach of its solutions across mobile platforms and drive forward the realization of its in-memory computing vision. This can drive higher user adoption of SAP software and unlock significant business value out of existing customer investments.
In addition, Sybase’s 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 can provide the opportunity for performance improvements to its analytic processing capabilities. Sybase can also be able to bring its 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.
Finally, Sybase’s core database business can be enhanced by SAP in-memory technology to deliver integrated transactional and analytical capabilities. At the same time, SAP reinforced its dedication to customer choice by stating that it will continue its commitment to supporting database vendors.
“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,” said Bill McDermott, co-CEO of SAP and member of the SAP 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,” he added.
SAP said it will continue to support each organization’s product road map while enhancing products to help customers derive additional value from existing investments.
It also stated that both companies’ development organizations would remain intact, with the opportunity to cross-collaborate to increase innovation for customers.
Headquartered in Dublin, California, Sybase delivers a range of solutions to ensure that customer information is securely managed and mobilized to the point of action, including enterprise and mobile databases, middleware, synchronization, encryption and device management software, and mobile messaging services.
The two companies announced that Sybase will operate as a standalone unit under the name “Sybase, an SAP Company.” Sybase’s management team will continue to run the business. The SAP Executive Board plans to propose to the Supervisory Board to appoint the Chairman and CEO of Sybase to SAP’s Executive Board.
MWC 2010: Interview with Gregory Dunn of SYBASE