SAP Buys OutlookSoft in Oracle Counter-Tack

German business software maker SAP AG announced it plans to buy business-intelligence software maker OutlookSoft Corp; OutlookSoft's product line centers around budgeting and financial forecasting. Analysts remarked it was no accident that the announcement follows rival Oracle's recent acquisition of Hyperion Solutions Corp., whose products cover some of the same areas. The companies have dueled recently as Oracle has accused SAP of stealing customers. OutlookSoft CEO Phil Wilmington is a former PeopleSoft Inc. executive who participated in an (unsuccessful) effort to prevent it from being acquired by Oracle. Terms of the deal weren't released, but analysts said SAP was spending in the area of $200 million, less than a tenth of the $3.3 billion Oracle shelled out for Hyperion. OutlookSoft has about 700 customers and 250 employees. SAP AG shares are down 11.3% YTD and 16.2% over the last year.

Sources: Press release, MarketWatch
Commentary: SAP's Q1 Results: Did the Company Clean Out the Drawer? • Is SAP Gaining or Losing Market Share? • SAP: Putting Its Customers Ahead Of Its Stock Price
Stocks/ETFs to watch: SAP AG (SAP). Competitors: Oracle Corp. (ORCL), Cisco Systems Inc. (CSCO), Business Objects S.A. (BOBJ), Microsoft Corp. (MSFT), Lawson Software Inc. (LWSN). ETFs: Software HOLDRS Trust ETF (SWH), WisdomTree International Technology Fund (DBT), iShares MSCI Germany Index Fund (EWG)
Conference call transcript: SAP Q1 2007

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