SAP Buying Ariba For $4.3 Billion
Business management software company SAP AG is acquiring Ariba Inc. for $4.3 billion. Ariba creates software that is an online trading platform for businesses. This acquisition will lead to SAP’s largest push into cloud computing. SAP will pay $45 per share for Ariba, which is 20% over the closing price yesterday. The transaction is expected to close by the third quarter and it is subject to approval by Ariba shareholders.
Ariba is the leading company for cloud-based collaborative commerce applications and is the second largest cloud vendor based on revenue. “Cloud-based collaboration is redefining business network innovation, and we are catching this wave in the early stage of its evolution,” stated SAP co-Chief Executive Officers Bill McDermott and Jim Hagemann Snabe in a statement.
Ariba had reported $444 million in revenues last year, which is a 39% increase from a year earlier. Ariba’s software generates over $319 billion in commerce transactions.