By Dinesh C Sharma, 1 March 2005 09:00
NEWS
Software giant SAP announced on Monday that it has signed a merger agreement with retail application maker Retek in a deal valued at about $496m.
SAP said it will pay $8.50 per share for Retek, a 42 per cent premium over Retek's closing price on Friday. This works out to roughly $496m, the software maker said. The deal is subject to shareholder and regulatory approval. It is expected to be completed in early April.
Retek, a Minneapolis-based maker of software for the retail business, has 525 employees and last year had revenue of $174.2m. SAP said the integration of Retek products in its own suite will help it target a retail industry that has a newfound appetite for packaged software.
SAP chief executive Henning Kagermann said in a statement: "Retek... will enable us to offer the most comprehensive solution in the industry, from the point of sale through the entire retail supply chain."
Last month, SAP announced its acquisition of TomorrowNow, a software company that provides support services for products sold by the former PeopleSoft and J.D. Edwards. The move was designed to attract customers after Oracle took over PeopleSoft.
Dinesh C. Sharma writes for CNET News.com.
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