SAP proposes to acquire BusinessObjects for $6.8 billion. Assuming all regulatory clearances, the deal is expected to close in Q1 2008.
This is SAP's largest acquisition ever and a tacit acknowledgment that Oracle's acquisition strategy is working. It provides SAP with a significant leg up in its goal to reach 100,000 customers by 2010. BusinessObjects has 44,000 customers compared to SAP's 43,000. There is a fair amount of overlap but the precise degree has not been parsed.
While the acquisition makes sense, it caught a number of my colleagues by surprise. My initial analysis can be found on ZDNet. Dan Farber's take is here while Jeff Nolan's opinion is here.
The general view right is that the deal is good for both parties. More will be revealed when the two companies present at a webcast at 3pm CET today.
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