SAP plans no big buys

FRANKFURT: SAP AG, Europe's biggest business software maker, has no plans for major purchases but is in talks over small add-on acquisitions, its chief executive said in a newspaper interview.

"We are in talks with several companies but those are not concrete negotiations. It is only about small add-on acquisitions," Henning Kagermann told German daily Sueddeutsche Zeitung in an interview to appear in Wednesday's edition.

"Our opinion on acquisitions has changed. They are now part of the growth strategy," Kagermann was quoted as saying.

"We do not want to buy market share. But, we would certainly be interested in companies which would give us easier access to certain industries, client groups and regions or which would help us to close technological gaps."

SAP makes software, which helps organizations ranging from Coca-Cola to the European Central Bank to manage tasks such as payroll, inventory and supply.

Asked whether the company's liquidity of two billion euros ($2.5 billion) would be enough for major buys, Kagermann said SAP aimed to double its liquid funds by the end of next year.

"In addition we could carry out takeovers via a share swap. But this is currently neither an issue nor opportune," he said.

© Reuters