SAP to buy Sybase for $US5.8B in all-cash deal

The deal gives SAP mobile and database technology

SAP has announced it will buy mobile and database vendor Sybase for roughly $5.8 billion.

The all-cash offer of $US65 per share amounts to a 44% premium over Sybase's three-month average stock price, according to SAP. Sybase's board has voted unanimously in favor of the deal, which requires clearance by antitrust officials, SAP said.

The pending deal would significantly expand the technological portfolio of SAP, which is known most of all for its ERP (enterprise resource planning) applications.

"They're investing in two areas they think will be important for them," namely mobile technology and in-memory databases, both areas where Sybase is strong, said Ray Wang, partner with Altimeter Group.

In-memory processing is a particular interest of SAP co-founder and chairman Hasso Plattner, who has predicted it will reshape the enterprise application arena thanks to the performance improvement it can provide over databases that must read from and write to disks.

In a statement, SAP said its own in-memory technology would boost the capabilities of Sybase's database platform.

Meanwhile, the deal raises questions about SAP's relationships with other mobile technology companies, such as Research in Motion, said 451 Group analyst China Martens via e-mail.

"They made a big deal of when they announced the relationship with Sybase about how it was nonexclusive and how they hold very dear the partnership with RIM," Martens said. SAP formed a strategic partnership with Sybase in March 2009 focused on mobile applications.

Sybase's database is a less common option for running SAP applications in part due to historical compatibility issues with older SAP platforms. In addition, SAP currently sends lucrative business toward rival Oracle , as it resells the latter's database. Those dynamics could change with Sybase's technology coming under SAP's roof.

But SAP will also gain a new doorway into financial services, where Sybase has a strong presence.

Both companies' product road maps will be preserved, as will their development groups, but "the opportunity to cross-collaborate" will be there, SAP said.

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags databaseSAPmobilesybase

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Computerworld Staff

Computerworld (US)
Show Comments

Essentials

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?