SAP to buy Ariba for $4.5B, extending cloud push

May 22, 2012

(AP) -- Business software maker SAP AG on Tuesday said it will buy Ariba Inc., which makes Web-based software that connects suppliers and buyers online, for about $4.51 billion.

The deal continues Germany-based SAP's with database maker . Both companies are buying up smaller ones that, like Ariba, provide software that's hosted on remote servers, in the so-called "cloud." Cloud-based applications remove the need for businesses to install and run software in-house.

In April, Redwood Shores, Calif.-based Oracle closed on the $1.9 billion acquisition of Taleo Corp., which provides cloud-based software that helps companies recruit and manage employees.

SAP said it is offering $45 per share for Sunnyvale, Calif.-based Ariba. Ariba shares closed Tuesday at $44.87, up $7.23, or 19 percent. The price indicates that investors expect the deal to be consummated at the price SAP is offering.

SAP shares fell 10 cents to $58.69 per share.

Ariba's board has approved the deal and SAP says it should close during the third quarter if Ariba shareholders approve the sale.

Ariba's business-to-business network connects 730,000 companies and transactions worth $319 billion per year, SAP said. It said it would keep the network open, letting companies that use competing business software packages from Oracle and . connect to it.

Ariba's revenue grew almost 40 percent to $444 million in its latest fiscal year. SAP says the deal should add to its adjusted profit in 2013. The company has about 2,600 employees.

Explore further: IBM posts lower 1Q earnings amid hardware slump

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Oracle to pay $1.9B for Taleo, extends SAP rivalry

Feb 09, 2012

(AP) -- Oracle Corp. is escalating its rivalry with German business-software maker SAP AG and plans to pay $1.9 billion for Taleo Corp., a company that helps businesses hire and manage their employees.

SAP to pay $3.4B for SuccessFactors

Dec 04, 2011

(AP) -- SAP said Saturday it is paying $3.4 billion to acquire SuccessFactors, a software company specializing in human resources tasks. It is the latest move in the escalating rivalry between SAP and Oracle Corp., and underscores ...

SAP to pay $20M to settle criminal charges

Sep 15, 2011

(AP) -- Business software maker SAP AG on Wednesday said it agreed to pay $20 million to settle criminal charges from the U.S. Department of Justice against a now-defunct subsidiary, TomorrowNow.

Recommended for you

IBM posts lower 1Q earnings amid hardware slump

7 hours ago

IBM's first-quarter earnings fell and revenue came in below Wall Street's expectations amid an ongoing decline in its hardware business, one that was exasperated by weaker demand in China and emerging markets.

New US-Spanish firm says targets rich mobile ad market

14 hours ago

Spanish telecoms firm Telefonica and US investment giant Blackstone launched a mobile telephone advertising venture on Wednesday, challenging internet giants such as Google and Facebook in a multi-billion-dollar ...

Technip, Heerema win third giant Angolan oil contract

17 hours ago

The ultra-deep Angolan offshore oil project called Kaombo generated the third huge contract in three days on Wednesday when French group Total picked two firms to carry out underwater engineering worth $3.5 billion.

User comments : 0

More news stories

Simplicity is key to co-operative robots

A way of making hundreds—or even thousands—of tiny robots cluster to carry out tasks without using any memory or processing power has been developed by engineers at the University of Sheffield, UK.

Microsoft CEO is driving data-culture mindset

(Phys.org) —Microsoft's future strategy: is all about leveraging data, from different sources, coming together using one cohesive Microsoft architecture. Microsoft CEO Satya Nadella on Tuesday, both in ...

Floating nuclear plants could ride out tsunamis

When an earthquake and tsunami struck the Fukushima Daiichi nuclear plant complex in 2011, neither the quake nor the inundation caused the ensuing contamination. Rather, it was the aftereffects—specifically, ...

Patent talk: Google sharpens contact lens vision

(Phys.org) —A report from Patent Bolt brings us one step closer to what Google may have in mind in developing smart contact lenses. According to the discussion Google is interested in the concept of contact ...