SAP to Acquire Sybase, Inc.

Company says move will accelerate reach of SAP solutions across mobile platforms

SAP subsidiary SAP America, Inc. has signed an agreement to acquire Sybase Inc. The companies can "become better-run 'unwired enterprises'" and benefit from "greater productivity, speed and agility to help their businesses grow, according to a company statement.

SAP America, Inc., is making an all cash tender offer for all outstanding shares of Sybase's common stock, agreeing to pay $65 per share, a 44 percent premium over the average Sybase stock price during the last three months, placing a value of $5.8 billion on the transaction. SAP will use cash on hand and an approximately $3.5 billion loan through Barclays Capital and Deutsche Bank. The deal is expected to close in the third quarter of this year.

Sybase's board of directors unanimously approved the merger, which requires the tendering of "a majority of the outstanding shares of Sybase’s common stock on a fully diluted basis and clearance by the relevant antitrust authorities."

Sybase will continue to operate as a standalone unit and will be called “Sybase, an SAP Company.” Sybase’s management team will remain in tact for now; the SAP Executive Board is expected to propose to the Supervisory Board that it appoint Sybase's Chairman and CEO to SAP’s Executive Board.

“This combination is a transformative event in the software industry,” said John Chen, CEO of Sybase, Inc. “SAP’s in-memory technology in combination with Sybase’s database technology will revolutionize how transactional and analytic applications are built, benefiting all businesses. Further, by combining the market leader in enterprise applications with the market leader in enterprise mobility, companies around the world will be able to run their business from many devices. This will drive a new wave of enterprise productivity. The combined SAP/Sybase will be able to provide a software offering that enables companies to transform their businesses in an increasingly data-, consumer- and mobile-centric world.”

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