SAP To Buy Ariba For $4.3 Billion To Boost Cloud Offerings

   DOW JONES NEWSWIRES 
 

German enterprise software maker SAP AG (SAP, SAP.XE) said it will acquire cloud-based business commerce network Ariba Inc. (ARBA) for about $4.3 billion in a deal that will significantly expand SAP's cloud offerings.

SAP will acquire Ariba for $45 a share, a 20% premium to the stock's closing price Monday. The deal is expected to close in the third quarter. Ariba's board has unanimously approved the deal. Ariba shares were halted in recent trading.

SAP said the acquisition of Ariba will create new models for business-to-business collaboration in the cloud and positions SAP in a fast-growing segment as demand for cloud-based services increases. Ariba, which uses technology with a web-based trading community to help companies collaborate with a global network of partners in a cloud-based environment, had $444 million in total revenue in 2011. SAP said it plans to consolidate all cloud-realted supplier assets of SAP udner Ariba.

"The addition of Ariba will create the business network of the future, deliver immediate value to our customers and provide another solid engine for driving SAP's growth in the cloud," said SAP co-chief executives Bill McDermott and Jim Hagemann Snabe.

SAP has been on an acquisition streak of late, agreeing to acquire online software provider SuccessFactors Inc. late last year for $3.4 billion and mobile-application maker Syclo for an undisclosed amount last month.

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 up 12 cents to $58.91 in recent trading.

-By Nathalie Tadena, Dow Jones Newswires; 212-416-3287; [e-mail]