Europe's leading software firm SAP (NYSE:SAP), announced today that it has acquired TopManage Financial Solutions. $45 billion market capped SAP didn't disclose the value of the deal, but it will be an all-cash transaction. SAP has $7.5 billion annual sales.

TopManage is owned by QuickSoft, Harel Computers, private investors and its employees. QuickSoft owner Reuven Agassi serves as chief executive of TopManage.

In 1996, TopManage was spun off Top Tier Software, which in 2001 was acquired by SAP for $400 million.

German company SAP will incorporate TopManage in a new division that will offer new products to small and medium-size customers. This constitutes a change in SAP's business strategy, which has focused on large enterprises until now.

Tel Aviv-based TopManage provides support and training services for its accounting and business management software TopManage. It has about 80 workers. Its software is considered the most popular Windows environment accounting management software in the local market.

TopManage has some 3,500 installations and over 10,000 users in Israel and overseas. Its customers include Bank of Israel, international real-state chain Varimax, Berlitz language school, online bookstore Dibook, laboratory equipment importer Labotal and Focus Computing Publishing.

SAP is planning to retain the TopManage development and support center in Israel. The center will continue providing technical support to local customers, and will become the international development center for TopManage software. Agassi will continue running the firm.

Top Tier has developed a portal interface solution that connects in-house databases and external databases using the same basic platform. This way the data is accessible and transparent to all enterprise users.

In April 2001, SAP spun the activity of its enterprise portal mySAP Workplace into an independent firm, SAP Portals and the Top Tier technology was incorporated with SAP Portals. The firm has 850 workers worldwide, 150 in Ra'anana, Israel. Agassi today runs SAP Portals, with which the SAP Markets division was recently merged.