DOW JONES NEWSWIRES
German enterprise software maker SAP AG (SAP, SAP.XE) said it
will acquire cloud-based business commerce network Ariba Inc.
(ARBA) for about $4.3 billion in a deal that will significantly
expand SAP's cloud offerings.
SAP will acquire Ariba for $45 a share, a 20% premium to the
stock's closing price Monday. The deal is expected to close in the
third quarter. Ariba's board has unanimously approved the deal.
Ariba shares were halted in recent trading.
SAP said the acquisition of Ariba will create new models for
business-to-business collaboration in the cloud and positions SAP
in a fast-growing segment as demand for cloud-based services
increases. Ariba, which uses technology with a web-based trading
community to help companies collaborate with a global network of
partners in a cloud-based environment, had $444 million in total
revenue in 2011. SAP said it plans to consolidate all cloud-realted
supplier assets of SAP udner Ariba.
"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," said
SAP co-chief executives Bill McDermott and Jim Hagemann Snabe.
SAP has been on an acquisition streak of late, agreeing to
acquire online software provider SuccessFactors Inc. late last year
for $3.4 billion and mobile-application maker Syclo for an
undisclosed amount last month.
Last month, SAP reiterated its outlook for double-digit revenue
growth in the second quarter and full year as the world's largest
business management software maker reported a rise in net profit
despite weak sales in North America and some European markets.
SAP's American depositary shares were up 12 cents to $58.91 in
recent trading.
-By Nathalie Tadena, Dow Jones Newswires; 212-416-3287;
nathalie.tadena@dowjones.com