SAP to shut down Oracle rival
New York - German software maker SAP AG said on Monday it will shut down TomorrowNow, a subsidiary that provided support for Oracle Corp software and was accused of stealing information from Oracle.
Bryan, Texas-based TomorrowNow was formed by former engineers at PeopleSoft Inc, with the idea of providing less expensive software support to PeopleSoft customers.
SAP bought TomorrowNow in 2005, around the same time Oracle completed its $11.1bn purchase of PeopleSoft.
Soon after, Oracle alleged in a lawsuit, TomorrowNow employees hacked into Oracle's computer network to steal information about its software so SAP would have a better chance of luring customers.
The lawsuit is scheduled for a February 2010 trial in San Francisco.
SAP Chief Executive Henning Kagermann has acknowledged that TomorrowNow made "inappropriate downloads" of Oracle's software coding, but he has maintained that its rival "wasn't significantly harmed" by the breach.
Even so, SAP said in November it was exploring selling TomorrowNow.
On Monday, SAP said it is working with TomorrowNow's customers to help them return to support from Oracle or find other options.
An Oracle spokesperson declined to comment.
SAP's US-listed shares rose 51 cents to close at $55.95 on Monday. Oracle shares slipped 9 cents to $21.09.
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