SAP and Business Objects, two of the leading groups in business and accounting software, have announced that they are to join forces in a €4.8bn (£3.3bn) mega-deal.

SAP will effectively acquire Business Objects in a friendly takeover, which has been approved by the Business Objects board and is set to be recommended to shareholders.

The acquisition of Business Objects is part of SAP's strategy to double its market share by 2010.

'The combination of SAP and Business Objects in their respective domains will benefit customers, prospects, partners, employees and shareholders,' said SAP chief executive Henning Kagermann.

Business Objects will operate as a stand-alone business within the SAP Group. John Schwarz will continue as the CEO of the Business Objects entity and is expected to become a member of the SAP executive board.

Further reading:

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