German software maker SAP said it will acquire mobile software firm Sybase in an all-cash deal valued at USD 5.8 billion,which will allow it to provide its data and other programmes on mobile phones. In a statement,SAP said its America subsidiary has signed a definitive merger agreement to acquire Sybase. SAP said the buyout would improve its mobile offerings. It would use Sybase's mobile platform to enable all SAP software to be accessed on mobile phones. Sybase,on the other hand,would get access to SAP's "in-memory technology",which would improve processing capabilities. The company would also get access to SAP's event processing and analytics,which is being used by the financial sector. As per the agreement,SAP would pay USD 65 a share for Sybase,which is a 44 per cent premium to Sybase's three-month average price. The transaction would be funded from SAP's cash on hand and a 2.75 billion euros loan from Barclays Capital and Deutsche Bank. "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," SAP Co-Chief Executive Officer and Member of the Executive Board Bill McDermott said. The buyout puts SAP into the database software market,where its products would compete with rival,Oracle. The acquisition has been approved by the companies' boards of directors,but would need clearance from regulators.
