SAP’s (www.sap.com) subsidiary, SAP America, has entered into an agreement to acquire Ariba (www.ariba.com), a cloud-based business commerce network, for $45.00 per share, representing an enterprise value of approximately $4.3 billion. The acquisition will combine Ariba’s buyer-seller collaboration network with SAP’s customer base and business process expertise to create new models for business-to-business collaboration in the cloud. The acquisition establishes SAP as a leading business network, adding business-to-business collaboration to its existing solutions.
Last week, SAP announced the roadmap for its cloud applications business (Software-as-a-Service), focusing on managing customers, suppliers, employees, and financials, in addition to its cloud suite offerings SAP Business ByDesign and SAP Business One. The acquisition will also boost SAP’s cloud applications portfolio with the addition of Ariba’s cloud-based procurement solutions.
Together, SAP and Ariba are hoping to deliver a truly end-to-end solution that enables companies to achieve a closed-loop from source-to-pay, regardless of whether they deploy in the cloud, on-premise or through a combination of both. Ariba’s open network and SAP’s integration expertise will facilitate participation and extend the benefits of business collaboration to all companies, on any system, from any provider.
Upon completion of the transaction, it is planned to consolidate all cloud-related supplier assets of SAP under Ariba. The existing management team will continue to lead Ariba, which will operate as an independent business under the name “Ariba, an SAP company.” The SAP Executive Board intends to nominate Ariba CEO Bob Calderoni to the SAP Global Managing Board after closing of the transaction and subject to the approval of the SAP Supervisory Board.