SAP faces new competition from Software AG

Software AG, the business technology provider, will compete with SAP, the financial IT company, following a recent acquisition that has more than doubled AG's customer base according to IT analysts.

Software AG acquired 48% of IDS Sheer, the business software company, for €487m (£417m) or €15 per share to establish itself as a global player and competitor to SAP.

A Forrester senior analyst has said SAP missed out on the buy and will face serious competition as a result, our sister publication, V3 reported.

Stefan Ried, senior analyst at Forrester, said: 'SAP customers can now either go to SAP for integration and support services or to those offered by Software AG's new purchase.'

IDS Sheer will now give Software AG, Germany's third largest technology company, a stronger presence in the consulting business market where SAP have a substantial client base. It will also offer customers greater integration of SAP products including web-based IT systems a company statement said.

Karl-Heinz Streibich, Software AG CEO, said: 'With the merger of two technology leaders we will create a globally significant company. Our expertise in business process management will be unique and will increase our competitiveness in this growth market.'

'We want to drive the strategic development of the company even in economically difficult times' he added.

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