Enterprise software vendor SAP is set to acquire rival Sybase in a $5.8 billion deal, as it attempts to strengthen its product portfolio in a bid to take on rival Oracle.
Sybase is a California-based software maker offering programs that give employees access to business applications and software from their smartphones and other mobile devices.
SAP already offers programs that let users access business applications on the move, and the acquisition of Sybase will consolidate both companies' expertise.
Indistry insiders say SAP has woken up to the fact that in order to expand its operations and services the company would need to aggressively acquire smaller companies.
The move emulates Oracle's actions in spending $42 billion to acquire 60 companies, including Sun Microsystems last year.
Experts believe that by acquiring Sybase, SAP will have an upper hand against Oracle because SAP will be able to offer its customers mobility, something that Oracle has yet to do.
SAP co-CEO Jim Hagemann Snabe told Reuters: “We want to make sure SAP solutions can be accessed from all leading mobile devices. The acquisition of Sybase will allow us and our partners to do just that.”