My Tweet Room

Thursday, May 24, 2012

SAP to buy Ariba, enterprise value $4.3 billion

 Expanding SAP's presence in cloud with e-commerce vendor purchase

 
SAP AG said it would buy smaller software maker Ariba Inc for $45 a share, representing an enterprise value of about $4.3 billion, the latest in a string of acquisitions to help fuel revenue growth at the German technology company.

Ariba shares were about up about 19.2 percent to $44.88 on Nasdaq on Tuesday. Ariba shares had been halted prior to the announcement.

Ariba's platform focuses on business-to-business commerce transactions. It makes a natural fit with SAP's "broad customer base and deep business process expertise," SAP said in a statement.

Ariba's network will grow to more than 1 million companies this year, SAP co-CEO Bill McDermott said during a conference call with media and analysts. "The growth opportunity in this arena is huge," he said.
SAP plans to keep Ariba's system open to other platforms, allowing customers to tap it from "any source system," according to McDermott. "All those companies that are not using SAP need not worry," he said.
Ariba's trading network and procurement applications would also complement SAP's cloud-based ERP (enterprise resource planning) suite Business ByDesign, as well as the Business One application for smaller companies, McDermott said.

Online trading networks like Ariba's "take the guesswork out of finding the best business partner" and make those interactions more efficient, SAP co-CEO Jim Hagemann Snabe said during the call.

SAP plans to utilize both the Crossgate and Ariba technology platforms, Snabe said, although he didn't provide specifics. It also plans to bring its HANA in-memory database into Ariba's technology stack, as well as analytics. The latter combination will help customers better understand their spending and supplier relations, according to Snabe.

3 comments:

Thanks for the great information ,was looking for this information from long.Great blog SAP HR Training in Chennai

Best blog.Got to learn new things.Thanks for this Blog SAP BASIS Training in Chennai

I'm glad to hear that, sap ariba. Good luck to you. Blogging is a great thing, and you get better with practice. sap ariba training in Hyderabad One of the best ways to grow is to read other people's blogs. See what they do, how they do things. It's always food for thought, and sometimes, it's downright inspiring.

Post a Comment

Twitter Delicious Facebook Digg Stumbleupon Favorites More