updated 10/8/2007 8:52:40 AM ET 2007-10-08T12:52:40

SAP AG has agreed to acquire software maker Business Objects SA in a tender offer valued at more than 4.8 billion euros ($6.8 billion), the companies said Sunday.

Under the terms of the agreement, SAP, the world's largest maker of business software that helps companies do back-office work such as payroll, inventory management and accounting, will pay 42 euros ($59.35) per share in cash.

SAP, based in Walldorf, Germany, said the board of Business Objects, based in Paris, France, expects to recommend the offer to its shareholders.

"We are highly committed to the next generation of applications serving business users," said Henning Kagermann, SAP's chief executive. "The combination of SAP and Business Objects in their respective domains will benefit customers, prospects, partners, employees and shareholders."

Kagermann said acquiring Business Objects, whose "business intelligence" tools help top corporate executives track their company's performance, keeps with SAP's strategy to double its addressable market by 2010.

"SAP will accelerate its growth in the Business User segment, while complementing the company's successful organic growth strategy," he said.

Business Objects will operate as a stand-alone business as part of the SAP Group, and Business Objects customers will gain the advantage of application alignment for business analytics, the companies said.

"The combination of Business Objects and SAP means that we can truly amplify the reach of Business Intelligence _ from the C-suite to Main Street," said Bernard Liautaud, chairman and founder of Business Objects.

John Schwarz would continue as the CEO of Business Objects and is expected to become a member of SAP's executive board, while Doug Merritt, corporate officer for SAP's Business User segment, would join the Business Objects entity and report to Schwarz, the companies said.

SAP said its supervisory board intends to propose Liautaud's election to the board at the company's next shareholders meeting. Until then, he will advise Kagermann on strategy and integration.

The transaction is expected to close in the first quarter of 2008, contingent on the holders of a majority of Business Objects shares agreeing to tender their shares, as well as clearance by U.S. and European Union antitrust regulators.

SAP said it expects the transaction to add to the company's earnings per share by 2009.

SAP's offer is a 20 percent premium over Friday's closing price for Business Objects shares, which rose 1.21 euros ($1.71) to 35 euros ($49.46) on the Paris stock exchange.

Copyright 2007 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


Discussion comments


Most active discussions

  1. votes comments
  2. votes comments
  3. votes comments
  4. votes comments

Data: Latest rates in the US

Home equity rates View rates in your area
Home equity type Today +/- Chart
$30K HELOC FICO 3.79%
$30K home equity loan FICO 4.99%
$75K home equity loan FICO 4.69%
Credit card rates View more rates
Card type Today +/- Last Week
Low Interest Cards 13.83%
Cash Back Cards 17.80%
Rewards Cards 17.18%
Source: Bankrate.com