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SAP buys Business Objects for $6.8 billion

In yet another tech mega deal in recent weeks, SAP announced on Sunday afternoon that it has agreed to buy Business Objects in a $6.8 billion deal.

In yet another tech mega deal in recent weeks, SAP announced on Sunday afternoon that it has agreed to buy Business Objects in a $6.8 billion deal.

The acquisition, which is expected to close in the first quarter of 2008, is SAP's largest acquisition. As noted by various sources, this deal is noteworthy in that SAP has a history of tending to develop its own technology rather than acquiring it.

Business Objects is a leader in the rapidly growing market of business intelligence (BI) software. SAP has said that it plans to combine its software offering BI vendor's products to offer customers real-time information about their businesses.

"This is part of its previously announced strategic plans to double its addressable market by 2010," said Henning Kagermann, SAP's chief executive, during a press conference on Sunday morning. "Together, we have almost 5,000 business partners. I think it will be a formidable force as we put our solutions together," he added.

Excerpt from The New York Times:

SAP, analysts say, needs to add more capabilities to its software to increase sales and prompt customers to buy new versions. The promise that business intelligence software might be able to glean insights from the data flowing through SAP’s enterprise planning system could justify the price of the Business Objects purchase, industry analysts say.

Read more about the deal in these news stories:

Oracle acquired Hyperion, a small rival of Business Objects, for $3.3 billion in March. With the Business Objects acquisition, SAP will certainly be better positioned to compete against Oracle.

About

Paul Mah is a writer and blogger who lives in Singapore, where he has worked for a number of years in various capacities within the IT industry. Paul enjoys tinkering with tech gadgets, smartphones, and networking devices.

1 comments
Derek Schauland
Derek Schauland

I suppose it was only a matter of time before someone other than MS snapped them up, but given the history of SAP's offering, most implementations needing a fulltime consultant (read: babysitter), does this mean the same will be true of future crystal releases? I guess I can see that reporting is something SAP needs to grow and move forward, and Business Objects is a money maker, but if SAP handles this the way they seem to handle their own products, Crystal could get quite interesting.