Business software heavyweight SAP has had to extend its offer to acquire enterprise and mobile software provider Sybase, after failing to satisfy certain conditions of the tender offer.
SAP announced yesterday that it has again extended the expiration of its cash tender offer for all outstanding shares of Sybase common stock from 16 to 26 July. Earlier this month, the expiration date was extended from 2 July to 16 July.
This comes as the company has yet to secure approval for the deal from the European Commission, under the European Union merger regulations. SAP notes that it is still within the European Commission's 25 working day review period; however, the 22 July deadline is drawing near.
SAP said previously it expected the transaction to close during the third quarter.
Mobile investment
The $5.8 billion Sybase deal would be SAP's second-largest acquisition, after its purchase of Business Objects in 2008.
Earlier this year, SAP co-CEO Bill McDermott noted that that, while the acquisition was hefty in price, he believed the need for mobile business solutions was great.
“When we talk to CEOs in major companies around the world, we find they are trying very hard to connect the virtual boardroom. They want to manage their business in real-time that will allow the man on the shop floor to connect to the office and the board,” he said.
“We believe in-memory technology will change the way data is captured and stored, and that the experience and market Sybase represents in this area will give us the opportunity to bring those innovations much more rapidly to market.”
McDermott emphasised the companies would share their “crown jewel” technologies and work together. “The Sybase database, side-by-side with in-memory from SAP, will improve analytics capabilities and offer real-time business management,” he noted.
SAP won't waste any time in its go-to-market strategy, he stated at the time. McDermott said Sybase would run as a separate company and that SAP, together with Sybase, would find synergies for the market to grow Sybase's core abilities.
“I want to make it really clear that as the acquisition relates to the eco-system, there will be no change in the way SAP goes to market. We will remain totally open to the vendors in our eco-system and those who can compete with Sybase today,” McDermott concluded.
Related story:
SAP outlines Sybase strategy
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