SAP buying database company Sybase for $5.8 billion

German business software company SAP just announced that it’s acquiring database company Sybase. SAP will pay $65 cash per share of Sybase stock, giving the deal a total enterprise value of $5.8 billion.

The deal is likely part of SAP’s efforts to compete with enterprise hardware and software giant Oracle. The press release also emphasizes the acquisition’s importance to SAP’s mobile products. (As a commenter points out, Sybase is actually a major provider for SMS text messaging services.)

“With this transaction, SAP will dramatically expand its addressable market by making available its market-leading solutions to hundreds of millions of mobile users, combining the world’s best business software with the world’s most powerful mobile infrastructure platform,” said SAP co-chief executive Bill McDermott in a written statement.

Sybase will operate as a standalone unit under its own name, SAP said. The companies plan to complete the deal in the third quarter of this year. Earlier today, Bloomberg reported that a deal was coming, sending Sybase shares up 35 percent.