Sybase shares soar 55% on SAP takeover

By David Goldman, staff writer


NEW YORK (CNNMoney.com) -- Shares of Sybase skyrocketed Wednesday following SAP's offer to buy the business software maker for $5.8 billion in cash.

Sybase's (SY) stock jumped 35% during normal trading hours, and leapt another 15% after hours.

The deal will help Germany's SAP (SAP) keep pace with arch-rival Oracle (ORCL, Fortune 500), which said it is stealing customers away from SAP.

Dublin, Calif.-based Sybase makes database software, including data analysis programs for financial institutions. SAP would also be acquiring new technologies from Sybase, including providing mobile access to databases. SAP's core business is software for corporate payrolls and customer relations.

Sybase has recently started to shift out of the enterprise database space, where it was losing to Oracle, IBM (IBM, Fortune 500) and Microsoft (MSFT, Fortune 500), and started carving out a mobile niche. Last year, Sybase inked a partnership with SAP around its mobile technology. Since then, many analysts have suggested that SAP just buy the company outright.

"With this transaction, SAP will dramatically expand its addressable market by making available its market-leading solutions to hundreds of millions of mobile users," said Bill McDermott, co-CEO of SAP, on a conference call with analysts. "This is a game-changing transaction for SAP and Sybase customers."

The deal values shares of Sybase at $65 a share for a 44% premium over the three-month average value of the company's stock price. Sybase will operate under the SAP name, but Sybase's current staff will continue to run that business.

"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," said John Chen, Sybase's chief executive, on the call.

The German software giant's CEO Leo Apotheker stepped down in February following the company's first annual sales decline in seven years. SAP replaced Apotheker with two co-CEOs, McDermott and Jim Hagemann Snabe, who announced earlier this year that they would look to acquire businesses that could help grow their company.

Shares of SAP fell 1% Wednesday and an additional 2% after hours. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 16,424.85 162.29 1.00%
Nasdaq 4,086.23 52.07 1.29%
S&P 500 1,862.31 19.33 1.05%
Treasuries 2.64 0.01 0.34%
Data as of 7:27pm ET
Company Price Change % Change
Bank of America Corp... 16.13 -0.26 -1.59%
Facebook Inc 59.72 0.63 1.07%
Yahoo! Inc 36.35 2.14 6.26%
Intel Corp 26.93 0.16 0.60%
Alcoa Inc 13.42 0.37 2.84%
Data as of 4:02pm ET
Sponsors

Sections

The company continues to struggle with convincing marketers to pay as much for mobile ads as they do for desktop ads. More

Observers are warning that risks of a blow up in China's property market are rising, threatening a slowdown that could hurt global growth. More

The company continues to struggle with convincing marketers to pay as much for mobile ads as they do for desktop ads. More

Schwinn, Trek and Cannondale are all iconic American bicycle brands. But none of them are made in the United States. More

Pamela Knighton, a 51-year-old social worker from Cuthbert, Ga. who earns less than $25,000 a year, had been really looking forward to her $4,300 tax refund last year. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.