Enterprise software giant SAP is acquiring fellow business software company Sybase for $5.8 billion in an all-cash offer. SAP is reportedly making the deal in an effort to compete with Oracle, which grew its business when it bought Sun Microsystems last year for $7.4 billion. The transaction is expected to close during the third quarter of 2010.
Sybase competes with Oracle in providing data software to businesses. Last year, Sybase and SAP announced a partnership to connect SAP’s enterprise software with Sybase’s mobile platform.
SAP has had a tumultuous year so far, with CEO Leo Apotheker resigning abruptly in February. This was compounded by sliding profits at the German company over the past few quarters.
According to the release, Sybase will operate as a standalone unit under the name “Sybase, an SAP Company” and Sybase’s management team will continue to run the business.