SAP is to buy out Business Objects for about €4,8-billion ($6,78-billion), boosting its business intelligence offerings.
Together, SAP and Business Objects intend to offer high-value solutions for process- and business-oriented professionals. The solutions will be designed to enable companies to strengthen decision processes, increase customer value and create sustainable competitive advantage through realtime, multi-dimensional business intelligence.
SAP boasts more than 41 200 customers in more than 120 countries. A key component its growth strategy is to significantly increase its revenues from new products including addressing the growing demands of business users.
“We are highly committed to the next generation of applications serving business users,” says Henning Kagermann, CEO of SAP. “The combination of SAP and Business Objects in their respective domains will benefit customers, prospects, partners, employees and shareholders. At SAP, we are excited about the prospect of having Business Objects join the SAP Group.”
He says the acquisition of Business Objects is in keeping with the company's stated strategy of doubling its addressable market by 2010.
"SAP will accelerate its growth in the business user segment, while complementing the company’s successful organic growth strategy. With the delivery of the first business process platform; the rapid adoption of our enterprise SOA platform, SAP NetWeaver; and the successful launch of the first complete on-demand business solution for midsized companies, SAP Business ByDesign, SAP can now take the opportunity to focus on the industry’s next high-growth opportunity, by accelerating and enhancing our efforts for the business user category,” Kagermann says.
Business Objects is recognized as one of the pioneers of the business intelligence (BI) software category. It offers solutions spanning the information discovery and delivery, information management, analysis and performance management categories for more than 44 000 customers around the world.
After the acquisition, Business Objects will operate as a standalone business as part of the SAP Group.