Right, it’s only my point of view. Anyone can think differently and believe that the value of the merger lies on the synergies of the 2 companies, but I don’t myself, motivated by following arguments:
– The functional coverage of the 2 apps offered by Ariba and Procuri is more or less similar,
– The growth of Procuri compared to the one of Ariba was definitely threatening Ariba’s growth ambitions,
– The value of the transaction – 93M$ – to acquire Procuri is tremendous and goes beyond any kind of innovation strategy. Ariba is wiping-up competition.
However, the business model of the 2 companies is different and the combination of the 2 might be a solution to address a broader market compared to the one where Ariba is currently successful (Fortune 500). It shall enable Ariba to expand its go-to-market strategy and solution-offering, one for high-demanding and complex multinational accounts and the other one – more specialised – for the middle market.