SAP (NYSE: SAP), the world's largest enterprise software company, bought business intelligence software firm Business Objects (NASDAQ: BOBJ) for $6.8 billion. The move should give SAP a leg up on global rival Oracle (NASDAQ: ORCL). The deal represents a 20% premium to Business Objects' closing price on Friday.

Business Objects is attractive to SAP because of the "firm's leadership in business intelligence, software that tracks and analyzes a company's performance as well as that of competitors," writes The Wall Street Journal. Because of SAP's focus on Fortune Global 1000 companies, the company has good penetration of its main products in these firms. It could use another line of products to sell into the world's largest companies.

Oracle has made a number of acquisitions over the last two years, which has helped to fuel its revenue growth. But, just as important, it allows the company's sales force to market most large customers several lines of software. SAP has probably lost an important competitive edge by having a more narrow product line.

SAP and Oracle's shares move up and down almost in parallel. If the European company can begin to distinguish what its can market into its customer base, it may be able to break out of that trading range. Business Objects may be just the beginning of a strategy that follows Oracle's "growth through acquisition" strategy.

Douglas A. McIntyre is a partner at 24/7 Wall St.