SAP will acquire Business Objects for $6 billion (4.8 billion euros) in a move that will enable it to offer organizations more advanced business intelligence and decision-making solutions. The companies expect to close the deal in the first quarter of 2008.
Walldorf, Germany-based SAP is a leading supplier of business software, such as customer relationship management, enterprise resource planning and supply change management applications, with more than 41,200 customers in some 120 countries.
Business Objects, headquartered in Paris, France, is a provider of business intelligence software with solutions spanning the information discovery and delivery, information management, analysis and performance management categories for more than 44,000 customers worldwide.
The acquisition will allow SAP to significantly increase its revenues from new products, including addressing the growing demands of business users, company officials said.
Both companies count numerous U.S. federal, state and local government agencies as customers. For example, SAP software has been deployed by the Defense Logistics Agency, National Geospatial Intelligence Agency, Naval Supply System Command, North Carolina and Erie County, N.Y.
Meanwhile, Business Objects has provided data warehouse and business intelligence solutions to the Defense Department, performance management software to the Environmental Protection Agency and a data warehouse support system to Wisconsin’s Department of Health Services.
Business Objects will operate as a stand-alone business within the SAP Group. Business Objects customers will continue to benefit from open, broad and integrated business intelligence solutions — independent of databases and applications — while also gaining the advantage of application alignment for business analytics, officials from both companies said.