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SAP aquires Ariba

Deal boosts SAP’s cloud applications with Ariba’s cloud-based procurement solutions


May 24, 2012
by Purchasingb2b Staff

WALLDORF, Germany and SUNNYVALE, California: SAP America is acquiring Ariba, a cloud-based business commerce network, for US$45 per share or roughly $4.3 billion. The deal combines Ariba’s buyer-seller collaboration network with SAP’s customer base and  business process expertise, said SAP America. The transaction is expected to close in this year’s third quarter.

The acquisition, said SAP, adds business-to-business collaboration to the company’s solutions. Last week, SAP also announced its road map for its cloud applications business, focusing on managing customers, suppliers, employees and financials, along with its cloud suite offerings SAP Business ByDesign and SAP Business One.

The deal will also boost SAP’s cloud applications portfolio with Sunnyvale, California-based Ariba’s cloud-based procurement solutions. SAP said combining the business network procurement solutions from Ariba and SAP, organizations can gain 360-degree business intelligence and show spending activities, contracts, and supplier interactions adhere to corporate compliance guidelines.

“The cloud has profoundly changed the way people interact,” said SAP Co-CEOs Bill McDermott and Jim Hagemann Snabe. “The impact will be even greater as enterprises connect and collaborate in new ways with their global networks of customers and partners. The addition of Ariba will create the business network of the future, deliver immediate value to our customers and provide another solid engine for driving SAP’s growth in the cloud.”

The Ariba network connects and automates over US$319 billion in commerce transactions, collaborations, and intelligence among over 730,000 companies. SAP’s global customer base of more than 190,000 companies includes the largest buyers and sellers in the world, said the company.

“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,” said Bob Calderoni, CEO of Ariba. “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.”

SAP will consolidate all its cloud-related supplier assets under Ariba, while Ariba wil stay independent under the name “Ariba, an SAP company.”