Accenture (NYSE: ACN) is enhancing its sourcing and procurement
services by agreeing to acquire the sourcing services and business
process outsourcing (BPO) services assets of Ariba, Inc. (Nasdaq:
ARBA), the leading provider of collaborative business commerce
solutions. Under the terms of the agreement, upon the closing of
the acquisition, Accenture will take ownership of these assets,
which include Ariba’s category expertise, sourcing process
expertise and strategic sourcing execution resources, strengthening
Accenture’s position as a leading provider of sourcing and
procurement consulting and outsourcing services.
Approximately 160 Ariba employees are expected to join Accenture
upon the closing of the transaction. The acquisition, which is
subject to customary closing conditions, is expected to close
within Ariba’s quarter ended December. The purchase price is $51
million, $12 million of which is subject to escrow to be released
based on the assignment and performance of certain assets.
“Ariba is a leader in spend management and this acquisition will
extend and strengthen Accenture’s existing sourcing and procurement
services by adding deeper category expertise, highly scalable
global sourcing service delivery operations and proprietary
sourcing databases, benchmarks and technologies,” said Mike
Salvino, group chief executive, BPO, Accenture. “We continue to
invest in our core BPO business by adding new capabilities that
combine both our BPO and Management Consulting offerings to create
value for the Ariba customer base and all of our clients.”
Ariba will retain its sourcing technology and the resources
within its Global Services organization that are dedicated to
software implementation and will continue to provide customers with
services that enable them to maximize their use of Ariba’s
solutions and the results that they deliver.
“In divesting our sourcing services and BPO assets and expanding
our partner ecosystem to include world-class organizations like
Accenture, Ariba can deliver on its strategy to provide companies
with access to network-based solutions that allow them to more
efficiently and effectively buy, sell and manage their cash,” said
Kevin Costello, president, Ariba. “We remain committed to
delivering innovative technologies – including sourcing
applications – that enhance the entire commerce process.”
Learn more about Accenture’s Sourcing and Procurement BPO
services.
About Accenture
Accenture is a global management consulting, technology services
and outsourcing company, with approximately 204,000 people serving
clients in more than 120 countries. Combining unparalleled
experience, comprehensive capabilities across all industries and
business functions, and extensive research on the world’s most
successful companies, Accenture collaborates with clients to help
them become high-performance businesses and governments. The
company generated net revenues of US$21.6 billion for the
fiscal year ended Aug. 31, 2010. Its home page is
www.accenture.com.
About Ariba, Inc.
Ariba, Inc. is the leading provider of collaborative business
commerce solutions. Ariba combines industry-leading software as a
service (SaaS) technology to optimize the complete commerce
lifecycle with the world's largest web-based community to discover,
connect and collaborate with a global network of trading partners,
delivering everything needed to control costs, minimize risk,
improve profits and enhance cash flow and operations – all in a
cloud-based environment. Whether you’re buying, selling or managing
cash, you can do it more efficiently and effectively in the Ariba®
Commerce Cloud. Over 300,000 companies, including more than 90
percent of the Fortune 100, use Ariba’s solutions to drive more
efficient inter-enterprise commerce. Why not join them? For more
information on Ariba commerce solutions and the results they
deliver, visit www.ariba.com
Copyright © 1996 – 2010 Ariba, Inc.
Ariba, the Ariba logo, AribaLIVE, SupplyWatch, Ariba.com,
Ariba.com Network, Ariba Spend Management. Find it. Get it. Keep
it. and PO-Flip are registered trademarks of Ariba, Inc. Ariba
Procure-to-Pay, Ariba Buyer, Ariba eForms, Ariba PunchOut, Ariba
Services Procurement, Ariba Travel and Expense, Ariba
Procure-to-Order, Ariba Procurement Content, Ariba Sourcing, Ariba
Savings and Pipeline Tracking, Ariba Category Management, Ariba
Category Playbooks, Ariba StartSourcing, Ariba Spend Visibility,
Ariba Analysis, Ariba Data Enrichment, Ariba Contract Management,
Ariba Contract Compliance, Ariba Electronic Signatures, Ariba
StartContracts, Ariba Invoice Management, Ariba Payment Management,
Ariba Working Capital Management, Ariba Settlement, Ariba Supplier
Information and Performance Management, Ariba Supplier Information
Management, Ariba Discovery, Ariba Invoice Automation, Ariba PO
Automation, Ariba Express Content, Ariba Ready, and Ariba LIVE are
trademarks or service marks of Ariba, Inc. All other brand or
product names may be trademarks or registered trademarks of their
respective companies or organizations in the United States and/or
other countries.
Ariba Safe Harbor
Safe Harbor Statement under the Private Securities Litigation
Reform Act 1995: Information and announcements in this release
involve Ariba's expectations, beliefs, hopes, plans, intentions or
strategies regarding the future and are forward-looking statements
that involve risks and uncertainties. All forward-looking
statements included in this release are based upon information
available to Ariba as of the date of the release, and we assume no
obligation to update any such forward-looking statements. These
statements are not guarantees of future performance and actual
results could differ materially from our current expectations.
Factors that could cause or contribute to Ariba's operating and
financial results to differ materially from current expectations
include, but are not limited to: the impact of the credit crises on
Ariba’s results of operations and financial condition; delays in
development or shipment of new versions of Ariba's products and
services; lack of market acceptance of Ariba's existing or future
products or services; inability to continue to develop competitive
new products and services on a timely basis; introduction of new
products or services by major competitors; the impact of any
acquisitions or dispositions; the ability to attract and retain
qualified employees; difficulties in assimilating acquired
companies, long and unpredictable sales cycles and the deferrals of
anticipated orders; declining economic conditions, including the
impact of a recession; inability to control costs; changes in the
company's pricing or compensation policies; significant
fluctuations in our stock price; the outcome of and costs
associated with pending or potential future regulatory or legal
proceedings; the impact of our acquisitions, including the
disruption or loss of customer, business partner, supplier or
employee relationships; and the level of costs and expenses
incurred by Ariba as a result of such transactions. Factors and
risks associated with its business, including a number of the
factors and risks described above, are discussed in Ariba's Form
10-Q filed with the SEC on August 5, 2010.
Accenture Forward-Looking Statements
Statements in this news release may constitute forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements involve a number of risks,
uncertainties and other factors that could cause actual results to
differ materially from those expressed or implied. These include,
without limitation, risks that: we might not achieve the
anticipated benefits from the acquisition of Ariba’s sourcing
services assets; our results of operations could be adversely
affected by economic and political conditions and the effects of
these conditions on our clients’ businesses and levels of business
activity; the pricing environment continues to remain competitive,
and our profitability may suffer if we are not able to improve our
pricing and maintain favorable utilization rates; our profitability
may suffer if we cannot anticipate the cost and complexity of
performing our work or if we are not able to control our costs; our
business and financial results may be adversely affected if we are
unable to keep our supply of skills and resources in balance with
client demand, including if we are unable to hire sufficient
employees with the skills and background where they are needed; our
results of operations could be negatively affected if we cannot
expand and develop our services and solutions in response to
changes in technology and client demand; the consulting, systems
integration and technology and outsourcing markets are highly
competitive and we might not be able to compete effectively; our
revenues, revenue growth and earnings in U.S. dollars may be lower
if the U.S. dollar strengthens against other currencies,
particularly the Euro and British pound; our work with government
clients exposes us to additional risks in the government
contracting environment; clients may not be satisfied with our
services; our results of operations could be adversely affected if
our clients terminate their contracts with us; our outsourcing
services subject us to operational and financial risk; our results
of operations may be adversely affected by the type and level of
technology spending by our clients; our business could be
negatively affected by legal liability that results from our
providing solutions or services; our global operations, including
our global delivery network, are subject to complex risks, some of
which might be beyond our control; liabilities could arise if our
subcontractors or other third parties cannot deliver their project
contributions on time or at all; legislative or regulatory action
could materially and adversely affect us; we may be subject to
criticism and negative publicity related to our incorporation in
Ireland; we might be unable to achieve our business objectives if
we are unable to manage the organizational challenges associated
with our size; consolidation in the industries that we serve could
adversely affect our business; our ability to attract and retain
business may depend on our reputation in the marketplace; our share
price could fluctuate due to numerous factors, including
variability in revenues, operating results and profitability; as
well as the risks, uncertainties and other factors discussed under
the “Risk Factors” heading in our most recent annual report on Form
10-K and other documents filed with or furnished to the Securities
and Exchange Commission. Statements in this news release speak
only as of the date they were made, and Accenture undertakes no
duty to update any forward-looking statements made in this news
release or to conform such statements to actual results or changes
in Accenture’s expectations.
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