SAP, a German software company Oracle recently went after for an amended $777 million over copyright infringement, has just acquired information technology services company Ariba for $4.3 billion, to bolster its cloud service offerings.
The merger is expected to be completed some time in the 3rd quarter of 2012, and JPMorgan Chase and Deutsche Bank AG advised SAP on the sale, while Morgan Stanley guided Ariba. In related news, Morgan Stanley is presently being looked at regarding Facebook's building IPO drama. SAP is paying $45 a share, which is still subject to approval by Ariba shareholders and various regulators.
Ariba offers "Spend Management Solutions" which help companies to manage corporate spending and supply chains more efficiently. Ariba saw revenues of $444 million last year, with a profit of $33.3 million. Shares closed at $37.64 yesterday. Speaking on the merger in a press release, Ariba CEO Bob Calderoni states, “In our personal lives, networks are playing an increasingly important role in how we connect, share, and shop – bringing more insight and efficiency into everything we do - Businesses are looking for the same connectedness, insight, and efficiencies in the processes and collaboration with customers, suppliers, and partners beyond the walls of their companies. By combining Ariba’s open global trading network and SAP’s solutions and analytics, we are ushering in a new era of business-to-business collaboration and driving new levels of productivity.”