The Next Software Acquisitions |
| BusinessWeek - Oct 9, 2007 |
For decades, German software giant SAP (SAP) has been steadfast in its commitment to organic growth. During the last three years, SAP has spent a relatively modest $1 billion or so on acquisitions. During the same period, rival Oracle (ORCL) has announced $25 billion worth of deals, according to research analysts at Citigroup (C). But all of that changed on Oct. 7 when SAP said it would make its largest acquisition ever and pay $6.8 billion for Business Objects (BOBJ), a business intelligence and data mining company based in France.
It's a sign of how mergers and acquisitions will reshape the software sector in the months and years ahead. Growth in software is slowing, and private equity firms are struggling to raise financing for big acquisitions in the rocky credit markets. That opens the door to strategic buyers—from SAP and Oracle to IBM (IBM) and Hewlett-Packard (HPQ)—to seek out more deals.
Read Full Article from BusinessWeek
- Posted: 2007-10-09 10:18:41
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