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SAP Buys Pilot Software

The German business software maker acquires the California-based analytics software company.


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has purchased privately held Pilot Software, a small Mountain View, Calif.-based maker of analytics software.

The deal, announced Tuesday and whose terms were not disclosed, comes as large, integrated software companies move to expand their presence in the market for business intelligence applications and tools.

Pilot, says Sanjay Poonen, a senior vice president and general manager for analytics at SAP, develops software that allows upper-level managers to link their goals with operational information and distribute it to all levels of their organization.

Target markets include enterprise companies in manufacturing, the public sector and retailing, he said.

Pilot CEO Jonathan Becher will remain with the company and report to Poonen.

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Unlike rival


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, which has acquired a number of very large competitors, including PeopleSoft and Seibel Systems, in order to acquire customers and maintenance revenue, SAP has tended to focus on smaller, "tuck in" acquisitions needed to expand its portfolio of technologies.

Separately, SAP has extended the contract of CEO Henning Kagermann through May 2009.

Although the move was expected, there had been some concern on Wall Street because Kagermann is approaching SAP's retirement age of 60. Under company policy, his contract, which runs until 2008, can be extended one year at a time.

Kagermann joined SAP in 1982 and was appointed to the executive board in 1991. Kagermann was co-CEO together with Hasso Plattner between 1998 and 2003, and CEO thereafter.

Shares of SAP were recently off 28 cents to $46.83.