Business software maker SAP AG has agreed to acquire TopTier Software Inc., a portal software company, for US$400 million.
The cash deal, which is expected to be finalized in the second quarter, will make TopTier a wholly owned subsidiary of SAP.
TopTier reported revenue in 2000 of just $20 million, 20 times less than its purchase price. SAP says Top Tier's technology will be integrated into its mySAP Workplace product line.
The acquisition will provide SAP with TopTier customers, including DaimlerChrysler AG and Hewlett-Packard Co., enabling the German company to compete with Oracle Corp. and Siebel Systems Inc. in the enterprise portal market.