SAP To Acquire Business Objects In $6.8-Billion Friendly TakeoverSAP To Acquire Business Objects In $6.8-Billion Friendly Takeover

In an unusual Sunday software hook-up, business-intelligence powerhouse SAP said it had reached an agreement to acquire Business Objects SA in a friendly takeover worth some $6.8 billion.

SAP is making a cash offer of 42 Euros per share for Business Objects, which was founded in France in 1990 and currently maintains a headquarters in Paris and a U.S. base in San Jose, Calif. In its press release, SAP said that the cost of outstanding shares, along with transaction costs, added up to slightly more than 4.8-billion Euros. At current exchange rates, that translates to $6.78 billion.

"The acquisition of Business Objects is in keeping with SAP's stated strategy to double our addressable market by 2010 as announced in 2005," said SAP CEO Henning Kagermann.

Judging by available information, the deal might do just that. information reported last fall that SAP pegged its customer base at 35,000, and wanted to hit 100,000 by 2010.

According to Business Objects' Web site, the global BI specialist has 43,000 customers. Thus, the acquisition will immediately vault SAP's user roles to 78,000.

Kagermann hinted that, post deal, he's looking to ratchet up SAP's product strategy. "SAP will accelerate its growth in the Business User segment, while complementing the company's successful organic growth strategy," he said in a statement. "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."

SAP didn't say when the deal would close, other than to include boilerplate in its press release that the acquisition is subject to U.S. and French law.