Ariba Is Latest Acquisition In SAP's Move Into Cloud
23 Mai 2012 - 1:13AM
Dow Jones News
German enterprise software maker SAP AG (SAP, SAP.XE) said
Tuesday it will acquire cloud-based business commerce network Ariba
Inc. (ARBA) for $4.3 billion in cash, a deal that will
significantly expand SAP's cloud offerings.
SAP will pay $45 for each share of Ariba, a 20% premium to the
stock's closing price Monday. Walldorf, Germany-based SAP will
finance the deal with cash on hand and a term loan. Ariba's board
unanimously approved the deal, which is expected to close in the
third quarter.
Calling the deal a "game-changing opportunity," SAP co-Chief
Executive Jim Hagemann Snabe said acquiring Ariba gave SAP a global
network to track and manage purchases. He said Ariba's network
would be combined with SAP's resource-planning and back-office
software suite to create a network that was "more powerful,
innovative and agile than any single entity."
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 that 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 for $3.4 billion in February in an effort
to boost its presence in the cloud. It indicated last month that
the company needed to grow its cloud business even faster.
Other enterprise software companies have also turned to
acquisitions to jump-start their cloud strategies. Competitor
Oracle Corp. (ORCL) purchased Taleo, a maker of Web-based talent
management tools, and RightNow Technologies, which makes
customer-service applications delivered via the cloud.
Sunnyvale, Calif.-based Ariba also was on the acquisition track.
Last year it acquired privately held Quadrem Inc. for its broad
customer base in South America and Asia Pacific. Added to Ariba's
core business in North America and Europe, the deal expanded
Ariba's reach to more than 65 countries.
Ariba built a cloud-based trading community to help companies
collaborate with suppliers. It had $444 million in total revenue in
2011. SAP said it plans to consolidate all cloud-related supplier
assets of SAP under Ariba.
Besides expanding its cloud offerings, Ariba customers may boost
demand for other SAP software. William McDermott, co-CEO of SAP,
said he expected the addition of Ariba customers to "clearly
invigorate the on-premise business of SAP."
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 down 0.1% to $58.64 in
after-hours trading. Ariba closed up 19% at $44.87.
-By Steven D. Jones, Dow Jones Newswires, 360-834-1865,
steve-d.jones@dowjones.com.
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