SAP Acquiring TopTier

German e-business solutions provider SAP AG is acquiring privately
held TopTier Software Inc., a developer of enterprise information portal
software, in a cash deal valued at about $400 million.

San Jose, Calif.-based TopTier has been an SAP partner since 1999 and parts of its
technology are already integrated with the SAP enterprise portal offering
called the mySAP Workplace. The move clearly bolsters SAP’s position in the
enterprise portal market.

SAP said it will acquire all of the outstanding shares of TopTier, which
become a wholly owned subsidiary of SAP. Closing of the deal is expected in
the second quarter.

SAP also gains an installed base of enterprise customers, including Daimler
Chrysler, Hewlett Packard, GMAC, Universal Studios and Wells Fargo Bank.

TopTier generated approximately $20 million of revenue in 2000. SAP said it
expects to record a charge resulting from acquired in-process research and
development that will not exceed $50 million. Excluding this one-time charge
and the amortization of goodwill and other intangibles acquired, SAP said it
expects the acquisition to have minimal impact on 2001 earnings per share.

SAP was up 57 cents in early trading today, to $29.17 a share.

Founded in 1996, TopTier’s products integrate information residing in a
business’s internal and external enterprise applications, databases,
documents, Web sites, and other data sources.

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