SAP defends price offered for Business Objects

PARIS (Reuters) - German software maker SAP on Monday defended the 20 percent premium it was prepared to fork out to snap up Franco-American software group Business Objects.

"The valuation of Business Objects is "not abnormal" in comparison to recent acquisitions in the sector... it's a balanced valuation in view of the enterprise value of Business Objects," SAP deputy-CEO Leo Apotheker told a news conference on the friendly deal in Paris.

Apotheker also said that synergies from the deal would come more from additional revenue leverage than from cost savings but he would not quantify them.

The world's leading business software maker, SAP said on Sunday it had agreed to acquire Business Objects for a total 4.8 billion euros ($6.8 billion). It said the primary driver for the acquisition, its biggest and a reversal of its avowed strategy of organic growth, was the potential to gain new business.

The 42 euros-per-share offer represents a 20 percent premium over Business Objects' closing price on Friday.