Business software company SAP has agreed to purchase a 5% stake in DCW Software in a first step toward acquiring the smaller German rival.
The deal is subject to approval by the German Federal Cartel Office, because SAP is a key player in the same market as DCW, said Ralf Nitsch, an SAP company spokesman.
"We expect to benefit from DCW's technical and midsized market expertise," Nitsch said. "The company has some highly skilled Java and C++ programmers and plenty of know-how in delivering tailored solutions to a range of sectors."
Nitsch declined to comment on whether the move to acquire DCW would help SAP acquire further market share.
Earlier this year at SAP's Sapphire customer conference and exhibition in Orlando, chief executive officer Henning Kagermann said that in the context of acquisition moves by Oracle and PeopleSoft, the German company did not "intend to buy market share".
John Blau writes for IDG News Service