(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 Follow Andrea Tse on Twitter and become a fan on Facebook.