SAP is merging with IBM, a major software developer and a leading provider of software tools and solutions for enterprise organizations, to create a new software development and engineering company that will offer software developers the same competitive advantages SAP offers to its customers.
IBM will retain the SAP brand name.
SAP will be based in San Jose, Calif., but its business will operate independently in the United States, the company said in a statement.
SAP also announced a $300 million financing round to help fund the acquisition.
SAP has been one of the fastest-growing technology companies in the world for several years, and in 2017 surpassed Amazon to become the world’s second-largest software company.
The company said it plans to create and operate a new business in the software development field that will combine SAP with its global workforce.
The merger will allow the two companies to continue to share technologies and expertise, the companies said in the statement.
IBM has been developing new technologies for enterprise customers.
In 2017, the software giant said it created SAP software to enable the rapid growth of applications for enterprise applications.
SAP’s business is focused on developing high-value, scalable applications that can be integrated with existing data centers and other data centers, such as in cloud and virtual environments.
The move to the SAP platform will allow SAP to accelerate its development and deployment of new technologies and improve its capabilities in the development and delivery of new software.
The combined company will be known as SAP Business, and SAP will continue to have full control over the SAP business.
SAP CEO Satya Nadella said in his keynote address at the event that the new company will combine technology with customer service, and the new group will focus on innovation, scale and agility.
He said the combined company should be able to accelerate SAP’s progress to deliver applications to customers with a greater speed and scale than previously possible.
The two companies will work together to develop SAP solutions and solutions solutions that will make their clients better.
The announcement was made in conjunction with the company’s annual developer conference in San Francisco, which is taking place this week.
The SAP conference kicks off Monday and runs through Wednesday.
SAP and IBM are seeking an initial public offering of the combined companies at an IPO price of $3.75 billion.
The companies said they expect to close the acquisition in early 2021.
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