Tuesday, May 22, 2012

SAP says it will buy Ariba for $4.5B

NEW YORK (AP) - Business software maker SAP AG says it will buy spending-management software company Ariba Inc. for about $4.51 billion.

SAP says it is offering $45 per share for the Sunnyvale, Calif., company. That's a premium of 19.6 percent from Monday's closing price of Ariba shares. Ariba had 100.2 million shares on the market as of March 31, according to FactSet.

Ariba's board has approved the deal and SAP says it should close during the third quarter if Ariba shareholders approve the sale.

SAP, based in Walldorf, Germany, says the deal is worth about $4.3 billion.

Ariba's revenue grew almost 40 percent to $444 million in its latest fiscal year. SAP says the deal should add to its adjusted profit in 2013. The company has around 2,600 employees.



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