By Ben Fox Rubin
SAP AG (SAP, SAP.XE) and Ariba Inc. (ARBA) said they are
responding to a second request for information from the U.S.
Justice Department regarding SAP's pending acquisition of
Ariba.
SAP, a German business-management software maker, in May agreed
to buy Internet commerce company Ariba for $4.3 billion, as SAP
sought new growth to keep pace with rival Oracle Corp. (ORCL).
The second request is part of a regulatory approval process
under anti-trust laws. The companies said they intend to continue
working with the Justice Department and expect the deal to close in
the fourth quarter of this year.
Ariba offers a global network to track and manage corporate
purchases, and its network would be combined with SAP's resource
planning and back office software suite.
The acquisition comes as more enterprises turn to the cloud for
software that is either installed behind corporate firewalls or
streamed into their businesses from remote servers. Cloud
proponents say the software is less costly and easier to update and
maintain than programs customers install at their own data
centers.
SAP has found it difficult to deliver cloud software as a
service. It launched its Business ByDesign cloud service in 2007
with the goal of signing up 10,000 customers and had attracted
about 1,000 customers by the end of last year. The company acquired
U.S. based SuccessFactors Inc. for $3.4 billion in February in an
effort to boost its presence in the cloud. It indicated recently
that the company needed to grow its cloud business even faster.
In April, SAP said its first-quarter profit rose despite weak
sales in North America and some European markets.
SAP's American depositary shares were up 17 cents at $60.20 and
Ariba's shares were down 22 cents at $44.55.
Write to Ben Fox Rubin at ben.rubin@dowjones.com