According to the technology vendor, the value of each share equates to $65 as part of the transaction, which will be funded by currently available capital and a loan worth â¬2.75 billion backed by Deutsche Bank and Barclays Capital.
Customers of the firms will be able to benefit from âgreater productivity, speed and agilityâ to bolster business growth, the two companies have stated.
As a result of the merger, SAP technology solutions will be more readily available across mobile platforms while Sybaseâs products will be able to connect to a range of applications for mobile handsets.
Bill McDermott, co-CEO of SAP and member of the SAP Executive Board, said: âWith this transaction, SAP will dramatically expand its addressable market by making available its market-leading solutions to hundreds of millions of mobile users, combining the worldâs best business software with the worldâs most powerful mobile infrastructure platform.â
The offer of $5.8 billion is a 44 per cent premium higher than the average three month stock price for Sybase.
Sybaseâs management will remain in place following the transaction while a proposal to appoint its chief executive officer and chairman to the SAP board is expected to be submitted.
By Jim Ottewill