MGI Research

Friday, Nov 27th

Last update03:17:28 PM GMT

SAP Buys Business Objects: Defensive Move?

On Sunday, October 7, 2007, SAP AG (NYSE: SAP) announced an agreement to acquire Business Objects(Nasdaq: BOBJ) via a cash tender offer valued at EUR4.8billion. The acquisition of Business Objects was not unexpected - the company has been in on-again, off-again conversations with Oracle (Nasdaq: ORCL) and other potential suitors for many months. The French press had leaked news of the SAP/BOBJ dialogue several weeks ago. Did SAP act defensively to thwart perceived interest in Business Objects by Oracle and others? Did SAP - as a result, pay too much for technology that is either at its peak or will require significant investment in the next five years? To access the full content of this Research Note, please CLICK HERE.