The fundamental results about definable groups in o-minimal structures all suggested a deep connection between these groups and Lie groups. Pillay's conjecture explicitly formulates this connection in analogy to Hilbert's fifth problem for locally compact topological groups, namely, a definably compact group is, after taking a suitable the quotient by a "small" (type definable of bounded index) subgroup, a Lie group of the same dimension. In this talk we will report on the proof of this conjecture in the remaining open case, i.e. in arbitrary o-minimal structures. Most of the talk will be devoted to one of the required tools, the formalism of the six Grothendieck operations of o-minimals sheaves, which might be useful on it own.