Monday, October 8, 2007
SAP agrees 4.8-billion-euro buyout of Business Objects (AFP)
Sun Oct 7, 7:02 PM ETPARIS (AFP) - Germany's SAP, a world leader in business software, announced late Sunday that it had agreed with France's Business Objects on a buy-out worth just over 4.8 billion euros (6.8 billion dollars).
"The Business Objects board of directors has approved the tender offer agreement between the two companies and anticipates recommending the offer to its shareholders subject to fulfillment of certain regulatory requirements," said a statement on the two companies' websites.
The deal involves a cash offer from SAP of 53.4 dollars (42.00 euros) per share of Business Objects, which posted a turnover of 1.3 billion dollars (886 million euros) last year.
"Together, SAP and Business Objects intend to offer high-value solutions for process- and business-oriented professionals," said the joint statement.
The deal is expected to close in the first quarter of next year, but Business Objects will operate as a stand-alone business as part of the SAP Group, the companies said.
"Business Objects customers will continue to benefit from open, broad and integrated business intelligence solution," said their statement.
"The acquisition of Business Objects is in keeping with SAP's stated strategy to double our addressable market by 2010" to reach 100,000 clients, Henning Kagermann, CEO of SAP AG, was quoted as saying.
SAP currently has around 41,200 clients and sold software licenses worth 3.1 billion euros last year.
The purchase marks a radical change of strategy for SAP, which in contrast to its US rival Oracle which spent more than 25 billion dollars on acquisitions since 2004, has instead opted more for organic growth.
SAP also bought management software producer Hyperion in March for 3.3 billion dollars.
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