Sybase Stock Soars on SAP Buyout

(Sybase acquisition story updated with SAP's announcement confirming the deal.)
NEW YORK (TheStreet) -- SAP(SAP) struck a deal to acquire Sybase(SY) for $5.8 billion Wednesday.

In a press release, SAP said it will offer $65 a share for Sybase, 44% more than the stock's average price over the last three months.

Sybase shares continued to skyrocket in after-hours trading Wednesday, adding nearly 15% to $56.14 after closing the regular session up 35%, a rise fueled by a Bloomberg report that an acquisition was in the works.

SAP said it will use cash and loans arranged by Barclays(BCX) and Deutsche Bank(DB) to finance the acquistion, yet another sign that the M&A market is coming back to life.

Shares of Oracle(ORCL), a competitor to both Sybase and SAP, have fallen 0.6% to $24.46 in after-hours trading.

Meanwhile, SAP is down 2% at $44.

-- Reported by Andrea Tse in New York; Scott Eden contributed to this report

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