SAP has historically relied on organic growth to remain competitive in the enterprise software market, but it broke from that pattern in a big way in Wednesday.
The firm has unveiled plans to acquire Sybase for $5.8 billion in a blockbuster deal expected to close in the third quarter of this year.
SAP said it plans to operate Sybase as a standalone unit, and that it will provide support for both companies’ product portfolios and developer platforms, Datamation reports.
SAP said it will purchase for Sybase for $5.8 billion, giving the German software giant a foothold in the database software market long dominated by archrival Oracle.
Sybase (NYSE: SY) shares rocketed up $14.57 a share, or 35 percent, to $56.14 in the regular trading session before adding another $6.96 a share, or 13 percent, to $63.10 after the bell on news of the merger.
Meanwhile, SAP shares closed off $0.47, or 1 percent, to $44.90 a share before slipping another $1, or 2 percent, to $43.90 in after-hours trading.