SAP AG and Ariba, Inc. announced that SAP's subsidiary, SAP America, Inc., has entered into an agreement to acquire Ariba, a cloud-based business commerce network, for $45 per share, representing an enterprise value of approximately $4.3 billion. The acquisition is intended to combine Ariba's buyer-seller collaboration network with SAP's customer base and business process expertise to create new models for business-to-business collaboration in the cloud. The transaction is expected to close in the third quarter of calendar year 2012, subject to Ariba stockholder approval, clearances by relevant regulatory authorities and other customary closing conditions.
According to SAP, the acquisition will position it as the leading business network, adding business-to-business collaboration to its existing solutions, and position SAP in a fast-growing segment as buyers and sellers across the globe connect in new ways through the cloud.
SAP notes that its entry into the inter-enterprise business network space expands its growth opportunities and accelerates its momentum in the cloud. SAP recently announced the roadmap for its cloud applications business (software-as-a-service), focusing on managing customers, suppliers, employees, and financials, in addition to its cloud suite offerings SAP Business ByDesign and SAP Business One. The acquisition is also expected to boost SAP's cloud applications portfolio with the addition of Ariba's leading cloud-based procurement solutions.
Headquartered in Sunnyvale, California, Ariba has approximately 2,600 employees. Ariba, says SAP, is the leader in cloud-based collaborative commerce applications and the second-largest cloud vendor by revenue; and combines industry-leading technology with a web-based trading community to help companies discover, connect and collaborate with a global network of partners – all in a cloud-based environment.
"In our personal lives, networks are playing an increasingly important role in how we connect, share, and shop – bringing more insight and efficiency into everything we do," said Bob Calderoni, CEO, Ariba. "Businesses are looking for the same connectedness, insight, and efficiencies in the processes and collaboration with customers, suppliers, and partners beyond the walls of their companies. By combining Ariba's open global trading network and SAP's solutions and analytics, we are ushering in a new era of business-to-business collaboration and driving new levels of productivity."
Upon completion of the transaction, SAP plans to consolidate all cloud-related supplier assets of SAP under Ariba. The existing management team will continue to lead Ariba, which will operate as an independent business under the name "Ariba, an SAP company."