SAP and Sybase merger gets ACCC tick
Wednesday, 28 July 2010 12:30pm
The Australian Competition & Consumer Commission has given the green light to SAP's $7-billion plus purchase of tech firm, Sybase, which provides complex event processing and analytics services used in the finance sector.
According to an ACCC statement, the proposed acquisition was unlikely to result in substantial lessening of competition because "the merger parties do not appear to be close competitors and their products are largely complementary."
"The ACCC also considered that the proposed acquisition was unlikely to raise concerns on a conglomerate basis. Post acquisition, there would remain a number of significant competitors to the merged firm in each product category."
The ACCC announced its findings after a review of the proposal was completed last Friday.
Earlier in May, Sybase directors backed a deal for SAP to buy the technology firm for a cash offer worth more than $7 billion in common stock.
SAP's subsidiary, SAP America, has signed an agreement to buy Sybase, which means both companies clients' will be better prepared to handle the mounting level of information.
Sybase board of directors unanimously approved the transaction however antitrust authorities (such as the ACCC) must approve the deal.
According to Sybase, the deal will accelerate the reach of both companies services across mobile platforms. Sybase's mobile platform will connect all applications and data to SAP technology to enable them on mobile devices.
In addition, SAP and Sybase customers will be able to connect to Sybase's messaging network.
For Sybase, SAP's technology will improve the performance of its analytic processing capabilities.
Sybase will also provide its complex event processing and analytics service to SAP customers in industries other than finance.
Both companies will support each other's product development strategies.
"This is a game changing transaction for SAP and Sybase customers, who will be better able to connect their employees with key functionality and information from anywhere and make it easier for companies to make faster, more informed business decisions in real time," said Bill McDermott, co-chief executive at SAP.
Ruth Liew
