After meeting all the necessary regulatory requirements, SAP can finally announce today that it has completed its acquisition of Ariba. The move will bring the leading web-based trading community – Ariba’s network supports over U.S.$319 billion in commerce transactions among more than 730,000 companies – to SAP customers.
Business networks, like the one from Ariba, enable companies to better coordinate with their partners and suppliers. Like Amazon for the consumer world, business networks make the purchasing process faster and easier for companies. They also support new business partnerships: companies are able to find new sources of supply, and sellers can find new customers. Since Ariba’s network is cloud-based, it cuts down on the disadvantages associated with a paper-based system, such as: high operating costs, missed sales opportunities, and slow cash flow.
SAP plans to provide its 195,000 customers with pre-built integration points, so they can easily connect to and profit from the Ariba business network. This goes for companies of any size and industry, no matter whether on premise or on demand.
The acquisition will cost SAP about U.S.$4.3 billion, or $45 per share. Ariba, headquartered in Sunnyvale, California with around 2,600 employees, will operate as an independent business under the name, Ariba, an SAP company.
For more information, see the SAP press release.