(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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