SAP AG and Ariba, Inc. ('Ariba') announced on May 22, 2012 that SAP's subsidiary, SAP America, Inc., has entered into an agreement to acquire Ariba, the leading cloud-based business commerce network, for USD 45.00 per share, representing an enterprise value of approximately USD 4.3 billion. The acquisition will combine Ariba's successful buyer-seller collaboration network with SAP's broad customer base and deep business process expertise to create new models for business-to-business collaboration in the cloud.
The Ariba board of directors has unanimously approved the transaction. The per share purchase price represents a 20% premium over the May 21 closing price and a 19% premium over the one month volume weighted average price per share. The transaction will be funded from SAP's free cash and a EUR 2.4 billion term loan facility. The transaction is expected to be accretive to SAP's non-IFRS earnings per share in 2013.
With the addition of Ariba, SAP will acquire the leader in cloud-based collaborative business commerce. Headquartered in Sunnyvale, California, Ariba has approximately 2,600 employees. The company is the leader in cloud-based collaborative commerce applications and the second-largest cloud vendor by revenue. Ariba combines industry-leading technology with a web-based trading community to help companies discover, connect and collaborate with a global network of partners - all in a cloud-based environment. With USD 444 million in total revenue, Ariba experienced 38.5 percent annual growth in 2011. Its business network recorded 62 percent organic growth in the same period.
Industry experts estimate the cloud-based enterprise network and procurement segment at a current size of USD 5 billion in revenue. The Ariba network is the largest and most global trading network, connecting and automating more than USD 319 billion in commerce transactions, collaborations, and intelligence among more than 730,000 companies.