In the wake of Oracle’s hostile takeover of PeopleSoft and Siebel, many people have been wondering which ERP vendor ultimately acquired both companies. The answer is SAP! In this article, we’ll explore why SAP acquired these two competitors and how it has helped the company grow to become a leader in enterprise resource planning software.
PeopleSoft and Siebel
Were both major players in the ERP industry and became household names for their respective CRM solutions. When Oracle purchased these two companies, many people thought it could be the end of an era for enterprise software development. But as we now know, SAP acquired PeopleSoft and Siebel shortly after they changed hands.
Since its inception, SAP has been dedicated to helping businesses become more efficient and competitive. In the early 2000s, the company recognized that both PeopleSoft and Siebel were leading players in the ERP market, and decided to acquire them both in order to strengthen its own position.
This move was met with some criticism at first, as many competitors and industry analysts saw it as a threat to the existing market. However, SAP was not looking to make life difficult for other players in the business software world; instead, its acquisition of both PeopleSoft and Siebel has helped drive innovation across all vendors by increasing competition.
Why Did SAP Acquire These Two Companies?
There are a few reasons why SAP decided to acquire these two companies. Firstly, Oracle posed a serious threat in the ERP market and was quickly gaining market share. Secondly, PeopleSoft and Siebel offered complementary solutions that would help bolster SAP’s product lineup. Finally, the acquisitions helped SAP expand its customer base and strengthen its presence in the United States.
When Oracle announced its plans to take over PeopleSoft, it sparked a heated bidding war with SAP. In the end, SAP was the victor and agreed to pay $19.50 per share for PeopleSoft (a total of $11.07 billion). The takeover of Siebel was a bit more contentious, with Oracle initially offering $48 per share (a total of $US13.96 billion) and then increasing its offer to $65 per share (a total of $US21.40 billion) after SAP made its bid for PeopleSoft. In the end, however, Oracle backed out of the bidding war and allowed SAP to acquire Siebel.
What Was the Impact of These Takeovers?
The acquisition of PeopleSoft gave SAP a foothold in North America, which was quickly becoming the most important market for enterprise software companies. The purchase also helped boost its CRM capabilities, since peoplesoft boasted an impressive customer base that SAP could now tap into.
The acquisition of Siebel was less successful, as the company had been struggling financially in recent years. However, it did give SAP a strong presence in Asia and Europe, which helped offset some of the losses incurred from its purchase of PeopleSoft.
Overall, the acquisitions of PeopleSoft and Siebel have been a boon for SAP. It has helped the company transition into a major player in enterprise resource planning software and solidify its place among other global players such as Oracle, Microsoft, and IBM.
PeopleSoft and Siebel were both major players in the ERP industry and became household names for their respective CRM solutions. When Oracle purchased these two companies, many people thought it could be the end of an era for enterprise software development. But as we now know, SAP acquired PeopleSoft and Siebel shortly after they changed hands.