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SAP Purchase Ariba for $4.3bn

Wednesday 23rd May, 2012

In the largest enterprise software deal since HP's purchase of Autonomy Corp last year, SAP has agreed to buy Ariba for $4.3bn, as reported in Bloomberg this morning. Ariba's known as a leader in cloud-based commerce and the purchase demonstrates SAP's intention to scoop up the demand for the relatively new technology.

On top of that, with Ariba's connection to more that 730,000 suppliers, SAP has expanded its reach globally, and the possibilities for collaborative commerce are endless. With Ariba's previous purchase of the French e-invoicing organisation, B-Process, and a collaborative deal with Dun & Bradstreet,  SAP are now in great shape to oil the wheels of supply chain finance and e-invoicing on an enormous scale.

The deal has yet to be agreed by Ariba shareholders, but is expected to be finalised at the end of August. However, there's still room for a power play amongst the two major players:

“There’s potential for other bidders to emerge,” said Richard Williams, an analyst at Cross Research in Livingston, New Jersey, "There’s a history of bidding wars between SAP and Oracle and this is exactly the kind of strategic company that would spark something like that.”