SAP's US arm has confirmed the acquisition of Sybase for around $5.8bn (£3.93bn), a 50 per cent premium on the current stock price after trading rose on rumours of a bid.
The company is looking to create a wider portfolio and the purchase will give it a footing in the mobile sector. This is SAP's second acquisition in a month, having snapped up TechniData for an undisclosed sum, suggesting that the company is expanding operations while purchase prices are low.
"Mobile devices are becoming the preferred interaction point with business applications, whether the user is a factory supervisor, a retail manager or an entrepreneur in a developing nation," said Jim Hagemann Snabe, co-chief executive of SAP.
"The combination of SAP and Sybase will give users the option of running their operations from leading mobile devices, and will unleash the full power of mobility, including messaging interoperability, content delivery and mobile commerce services, across all companies and roles and in any location."
The deal is expected to be concluded by the end of the year. Sybase will run as a separate unit within SAP, which will use Sybase's technology to extend its own software into the mobile market.
"This combination is a transformative event in the software industry," said John Chen, chief executive of Sybase.
"SAP's in-memory technology in combination with Sybase's database technology will revolutionise how transactional and analytic applications are built, benefiting all businesses."
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