SAP plans to buy Ariba
SAP intends to purchase Ariba.
SAP America has revealed it has gone into an agreement to purchase Ariba.
Business negotiations among Ariba's board of directors resulted in the transaction being unanimously approved.
An investigation shall take place regarding this tie-up by NASDAQ:ARBA share investors, the Shareholders Foundation has announced.
The overall cost of the deal will be $45 (£28.67) per share, or an overall company value of $4.3 billion.
This represents a 20 per cent premium over the closing price on May 21st, as well as a 19 per cent improvement on its one-month volume-weighted typical share value.
Ariba is a cloud-based business commerce network and the acquisition should bring its positive seller-buyer collaboration services into the broad client base and deep corporate process specialism of SAP.
Subject to the approval of Ariba's stockholders, the transaction is scheduled to close in the third quarter of 2012.
"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," SAP co-chief executive officers Jim Hagemann Snabe and Bill McDermott declared.
Posted by Ken Hayes
Source: Press reports, May 22nd