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The Objects of SAP's Desire
by Portfolio Staff
Oct 8 2007
Oct 8 2007
SAP to acquire Business Objects for $6.8 billion.
Last Trade:Change:
Summary:
The Company develops, manufactures, markets, distributes and services database and middleware software, as well as applications … View More
Last Trade:Change:
Summary:
The Company's business is developing and licensing business software solutions. It also sells maintenance, consulting, training … View More
The German software giant 
SAP has a new strategy in mind, and its investors evidently need a bit more convincing before they get on board.
SAP announced plans to acquireBusiness Objects, a French enterprise-software company, for about $6.8 billion. The $59.35-per-share offer represents a 20 percent premium over Business Objects' closing price on Friday.
It's a marked shift from SAP's strategy of growing its business organically, as its chief rival,Oracle, has expanded by spending more than $25 billion on more than 30 acquisitions in the past few years.
SAP shares fell more than 6 percent in premarket trading, even though analysts said the deal should be a positive one for SAP. Many investors worry this acquisition is just the first of many.
Shares of Business Objects, meanwhile, soared more than 15 percent.
SAP sells a wide range of software applications to help companies manage their data and operations. Business Objects applications help companies track their performance using intelligence software.
SAP has a new strategy in mind, and its investors evidently need a bit more convincing before they get on board.SAP announced plans to acquire
Business Objects, a French enterprise-software company, for about $6.8 billion. The $59.35-per-share offer represents a 20 percent premium over Business Objects' closing price on Friday. It's a marked shift from SAP's strategy of growing its business organically, as its chief rival,
Oracle, has expanded by spending more than $25 billion on more than 30 acquisitions in the past few years.SAP shares fell more than 6 percent in premarket trading, even though analysts said the deal should be a positive one for SAP. Many investors worry this acquisition is just the first of many.
Shares of Business Objects, meanwhile, soared more than 15 percent.
SAP sells a wide range of software applications to help companies manage their data and operations. Business Objects applications help companies track their performance using intelligence software.
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