Ariba Announces Definitive Agreement to Acquire Quadrem

Press Release from Ariba website here

Deal will expand depth and breadth of Ariba Network creating additional value for buyers and sellers around the world.

SUNNYVALE, Calif., and AMSTERDAM, The Netherlands – November 18, 2010 – Ariba, Inc. (Nasdaq: ARBA), the leading provider of collaborative business commerce solutions, today announced that it has signed a definitive agreement to acquire Quadrem, a privately-held provider of one of the world’s largest supply networks and on-demand supply management solutions. With the acquisition, Ariba further expands the depth and breadth of the Ariba® Network, its market-leading web-based trading community.

Ariba will pay a total of $150 million, comprised of an upfront payment of $75 million in cash and $50 million in stock, and a holdback payment of $25 million, subject to performance conditions, payable 36 months after the close in either cash or stock. Please see the 8-K for more detail in connection with mechanics of the escrow and holdback payments. In addition, and related to the transaction, Ariba will pay approximately $10 million to modify and terminate aspects of a commercial arrangement previously entered into by Quadrem.

The transaction, which is subject to customary closing conditions and regulatory approvals, has been approved by both companies’ board of directors and is expected to close in the second quarter of Ariba’s fiscal year 2011, ending March 31.

« Ariba’s on-demand commerce solutions and global trading network have made it easier for businesses of all sizes and industries to buy, sell, and manage cash. The acquisition of Quadrem will enable us to further expand our network volume and reach, accelerate growth, and extend better commerce to more companies in more regions of the globe, » said Bob Calderoni, CEO, Ariba. « Quadrem has proven its ability to build and monetize large-scale collaborative commerce programs. We can leverage this experience to create additional value for our customers and bring our proven solutions to Quadrem’s existing customer base to enhance the value of their investments. »

With approximately 70,000 suppliers in 65 countries and large buyer customers including Alcoa, Anglo American, BHP Billiton, Nestlé, Vale and Rio Tinto, Quadrem has a unique global footprint and expertise in operating one of the world’s largest on-demand supply networks. Quadrem’s 100% on-demand solutions service customers across a range of industries, including: natural resources, oil & gas and manufacturing. The company also operates a supplier identification and verification offering that is complementary to Ariba Discovery, a unique web-based service that helps to instantly connect buyers and suppliers around the world.

« In uniting our know how, solutions and people, Quadrem and Ariba can deliver unparalleled network scale and reach that enables buyers and sellers around the world to improve supply chain performance and tap new business opportunities, » said Charles Jackson, CEO, Quadrem. « Through the combined entities, companies will have access to a truly global partner who can help them optimize and extend buyer and supplier commerce and ultimately, the results that they deliver. »

« As a customer of both Ariba and Quadrem we look forward to the combination of the two companies and to the delivery of even more robust solutions we can leverage to support our operations, enhance our procurement effectiveness and extend collaboration with our suppliers globally. » said Scott Singer, Global Head of Procurement for Rio Tinto.

Conference Call and Webcast Information

Ariba will host a conference call to discuss this transaction today at 8:00 a.m. ET. To join the call, please dial 1-877-407-8031 in the United States and Canada, or 1-201-689-8031 if calling internationally. A live web broadcast of the call will be available on the investor relations section of Ariba’s website at: www.ariba.com. The webcast may also be accessed by logging in at http://www.vcall.com

A replay of the conference call will be available shortly after the completion of the conference call through January 18, 2011 and can be accessed by calling 1-877-660-6853 in the United States and Canada or 1-201-612-7415 internationally and entering account number: 286 and conference ID number: 361257.

About Quadrem

Quadrem (www.quadrem.com) operates one of the world’s largest supply networks, connecting buyers and suppliers by « digitizing » the many steps involved in buying and selling products and services. Since 2000 we have delivered 100% On Demand solutions that enable our customers to rapidly connect and collaborate to improve supply chain performance. Established in 2000, Quadrem has locations in Australia, Brazil, Canada, Chile, France, Mexico, The Netherlands, Peru, Singapore, South Africa and the United States.

About Ariba, Inc.
Ariba, Inc. is the leading provider of collaborative business commerce solutions. Ariba enables more efficient and effective buying, selling, and cash management by combining industry-leading software as a service (SaaS) commerce technology with the world’s largest web-based global trading community and expert capabilities and services to augment internal resources and skills – all as a flexible, cloud-based service. The Ariba® Commerce Cloud™ delivers everything needed to control costs, increase sales, minimize risk, and enhance cash flow and operations. More than 300,000 companies, including over 80 percent of the Fortune 100, use Ariba’s solutions to drive more efficient and effective inter-enterprise commerce. Why not join them? For more information on Ariba commerce solutions and the results they deliver, visit www.ariba.com.

Laisser un commentaire

%d blogueurs aiment cette page :