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SAP Ariba

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Not to be confused with ARIBA.
Ariba Inc.
Company typeSubsidiary
Formerly Nasdaq: ARBA
IndustryInternet Software & Services
Founded1996
Headquarters
Sunnyvale, California
,
U.S.
Area served
World Wide
Key people
Robert M. Calderoni, Keith Krach
ProductsSpend Management Software, Contract Management Software, Financial Solutions.
RevenueIncrease $ 335.1 million (FY 2011) [1]
Decrease $ -2.9 million (FY 2011)[1]
Increase $ 33.2 million (FY 2011)[1]
Total assetsIncrease $ 913.1 million (FY 2011)[1]
Total equityIncrease $ 647.9 million (FY 2011)[1]
Number of employees
2,432 (September 2011)[1]
ParentSAP AG
Websitewww.ariba.com

Ariba is a software and information technology services company located in Sunnyvale, California. It was acquired by German software maker SAP AG for $4.3 billion in 2012.[2][3]

Company Beginnings

Ariba was founded in 1996[4] by Bobby Lent, Boris Putanec, Paul Touw, Rob Desantis, Ed Kinsey, Paul Hegarty, and Keith Krach[5] on the idea of using the Internet to enable companies to facilitate and improve the procurement process. Procurement had been a paper-based, labor-intensive, and inefficient process for large corporations; main competitors in this arena include GEP, Basware and iPayables. According to the company's website, Ariba provides "Spend Management solutions" which help companies "analyze, understand, and manage their corporate spending to achieve cost savings and business process efficiency." Currently, 94 of the Fortune 100 and more than 200,000 other companies use Ariba's SaaS (Software as a Service) solutions to manage their spend and commerce activities.[6]

Ariba was one of the first business-to-business Internet companies to go public (in 1999).[7] The company's stock more than tripled from the offering price on opening day,[8][9] making the three year-old company worth $6 billion. In 2000, the stock value continued to climb, and Ariba's market capitalization was as high as $40 billion.[10] With the bursting of the dot-com bubble, Ariba's stock price fell dramatically to the low double digits in July 2001, where it remained for the rest of its life as an independent company.

Past acquisitions and competitors

On December 17, 1999 Ariba announced it would acquire Atlanta based TRADEX Technologies Inc. in a stock swap valued then at $1.86 billion.[11][12][13][14] TRADEX was the leader in the nascent Digital Marketplace Software field. The stock market liked the acquisition and the price of Ariba's shares rose from $57 at the time of the announcement to $173 at closing on March 9, 2000, which also marked the peak of the Internet Bubble. The 33.2 million shares that Ariba issued to buy TRADEX were then worth $5.6 billion to TRADEX shareholders.

In January 2001 Ariba announced that it would acquire Agile Software in a $2.55 billion stock swap.[15][16] By April, with Ariba facing a disappointing second quarter and cutting a third of its workforce, the deal had fallen apart.[17][18]

In early 2004, Ariba acquired FreeMarkets[19] which gave the company a software package in the upstream (sourcing) of the sourcing process.[20][21] In late 2007, Ariba bought the company Procuri for $93 million, which enhanced the company's client base and on-demand abilities.[22][23][24]

Ariba's competitors include Wax Digital, PROACTIS, SAP, Bravosolution, MultiQuote, Oracle, Procurify, GEP, Zycus, Rosslyn Analytics, Ivalua, Tradeshift, Coupa, SciQuest, and Emptoris.[25]

In December 2008, Ariba announced that the U.S. District Court for the Eastern District of Texas had issued an injunction against Emptoris,[26] which prohibits the company from infringing on two of Ariba's patents related to overtime and bid ceilings in reverse auctions.[27] On 16 December 2008, the court ordered Emptoris to pay an enhanced damages award of $1.4 million for willful infringement in connection with Emptoris’ infringement of the two reverse auction-patents held by Ariba. This was in addition to the 29 October 2008 jury award of $5 million in damages to Ariba,[26] bringing the total fine to approximately $6.4 million, a significant penalty for Emptoris which earned approximately $50 million in revenue for 2008. In an Emptoris press release, that company noted that it had released a new software "patch" that eliminates any infringement. The U.S. District Court, in February 2009, issued an order noting that the "patch" is colorably different, effectively concluding the case.

In November, 2010, Ariba announced that it would acquire Quadrem, a privately held provider of one of the world's largest supply networks and on-demand supply management solutions.[28][29] The acquisition closed in January 2011.[30]

In October, 2011 Ariba announced the acquisition of b-process, a privately held French company and European leader in electronic invoicing service provider, for approximately €35 million in cash.[31][32]

In April, 2013, Ariba partnered with MedAssets to extend the latter's supply chain management and outsourced procurement functionalities.[33]

AribaWeb

On February 19, 2009 Ariba announced AribaWeb,[34] an open source framework for Rich Internet Applications. It is designed to generate a user interface automatically from base Java or Groovy classes and includes Object-Relational Mapping features. It also encapsulates AJAX functionality[35] and has a broad selection of UI widgets.

Acquisition by SAP

On May 22, 2012 the German business software maker SAP AG announced to acquire Ariba for an estimated $4.3 billion.[2] SAP said it will pay $45 a share. JPMorgan Chase and Deutsche Bank AG advised SAP on the sale, while Morgan Stanley provided financial counsel to Ariba.[36] Ariba's shareholders approved the acquisition on 29 August 2012,[37][38] and it was completed on October 1, 2012 for $4.4 billion.[3][39]

References

  1. ^ a b c d e f "Ariba Inc 2011 Annual Report, Form 10-K, Filing Date Nov 10, 2011" (PDF). secdatabase.com. Retrieved July 5, 2012.
  2. ^ a b "Ariba, Form 8-K, Current Report, Filing Date May 22, 2012". secdatabase.com. Retrieved Jan 13, 2013.
  3. ^ a b "Ariba, Form 8-K, Current Report, Filing Date Oct 1, 2012" (PDF). secdatabase.com. Retrieved Jan 13, 2013.
  4. ^ Seeking Alpha. "5 Cloud Computing Takeover Targets Revisited." February 14, 2012. Retrieved March 14, 2012.
  5. ^ Ariba, Form S-1, Quarterly Report, Filing Date April 23, 1999, Retrieved August 15, 2013
  6. ^ "Ariba Delivers Down Under for Crown" (Press release). Ariba. 9 February 2010.
  7. ^ Om Malik, Forbes. "Ariba's next big challenge: managing hypergrowth." August 03, 1999. RetriGEPeved March 14, 2012.
  8. ^ Larry Dignan, CNET News. "Update: Ariba soars up 291 percent in IPO." June 23, 1999. Retrieved December 13, 2011.
  9. ^ Chris Nerney, InternetNews. "Ariba IPO Keeps Hope Alive." June 24, 1999. Retrieved December 13, 2011.
  10. ^ By Chris O'Brien, San Jose Mercury News. "O'Brien: Rising from the dot-com dead, Ariba surprises us all." June 5, 2012. Retrieved May 7, 2013.
  11. ^ By Brian Fonseca, Network World. "Ariba buys B2B company Tradex for $1.86 billion." December 17, 1999. Retrieved May 7, 2013.
  12. ^ "Ariba, Form 8-K, Current Report, Filing Date Dec 23, 1999". secdatabase.com. Retrieved Jan 13, 2013.
  13. ^ "Agreement and Plan of Reorganization - Ariba Inc. and Tradex Technologies Inc". FindLaw.com. 29 January 2000. Retrieved 28 February 2011.
  14. ^ Melanie Austria Farmer, CNET. "Ariba to expand Net market role with Tradex." December 16, 1999. Retrieved December 13, 2011.
  15. ^ "Ariba, Form 425, Filing Date Jan 29, 2001". secdatabase.com. Retrieved Jan 13, 2013.
  16. ^ "Ariba snaps up Agile Software for $2.55 billion". CNET News. 29 January 2001. Retrieved 21 December 2010.
  17. ^ "Ariba, Form 8-K, Current Report, Filing Date Apr 3, 2001". secdatabase.com. Retrieved Jan 13, 2013.
  18. ^ "TECHNOLOGY BRIEFING: INTERNET; ARIBA AND INKTOMI CUT EARNINGS". The New York Times. 3 April 2001. Retrieved 21 December 2010.
  19. ^ "COMPANY NEWS; ARIBA WILL BUY FREEMARKETS FOR $493 MILLION". The New York Times. 24 January 2004. Retrieved 21 December 2010.
  20. ^ "Ariba, Form 8-K, Current Report, Filing Date Jan 23, 2004" (PDF). secdatabase.com. Retrieved Jan 13, 2013.
  21. ^ "Ariba, Form 8-K, Current Report, Filing Date Jul 15, 2004". secdatabase.com. Retrieved Jan 13, 2013.
  22. ^ "Ariba, Form 8-K, Current Report, Filing Date Sep 20, 2007" (PDF). secdatabase.com. Retrieved Jan 13, 2013.
  23. ^ "Ariba Announces Definitive Agreement to Acquire Procuri". Business Wire. 20 September 2007. Retrieved 21 December 2010.
  24. ^ By Matt Marshall, Venture Beat. “Ariba buys supply chain management software co., Procuri for $93M.” September 21, 2007. Retrieved April 29, 2013.
  25. ^ Rizza, Mickey North (March 2010). "Reaching Sourcing Excellence, Part 5: Sourcing Technology Is a Commodity With Short Time to Value and Immediate ROI" (PDF). AMR Research. Retrieved 21 December 2010.
  26. ^ a b "Ariba, Form 10-Q, Quarterly Report, Filing Date Feb 6, 2009" (PDF). secdatabase.com. Retrieved Jan 13, 2013.
  27. ^ Wilson, Deborah R. (23 December 2008). "Ariba Lawsuit Delivers a Moderate Blow to Emptoris". Gartner. Retrieved 21 December 2010.
  28. ^ "Ariba, Form 8-K, Current Report, Filing Date Nov 18, 2010". secdatabase.com. Retrieved Jan 13, 2013.
  29. ^ "Ariba acquires Quadrem to bolster network". CNET News. 18 November 2010. Retrieved 13 September 2011.
  30. ^ "Ariba, Form 8-K, Current Report, Filing Date Jan 27, 2011" (PDF). secdatabase.com. Retrieved Jan 13, 2013.
  31. ^ "Ariba, Form 8-K, Current Report, Filing Date Oct 19, 2011". secdatabase.com. Retrieved Jan 13, 2013.
  32. ^ Patel, Vishal (October 2011). "Voulez-Vous eInvoice? Ariba buys b-process". Ardent Partners. Retrieved 28 October 2011.
  33. ^ The Paypers. “Ariba teams up with MedAssets.” April 9, 2013. Retrieved April 29, 2013.
  34. ^ Varhol, Peter (19 February 2009). "AribaWeb Framework becomes open source". Retrieved 2009-05-19.
  35. ^ "Ariba Open Sources Killer Framework for Web App Development". Business Wire. 19 February 2009. Retrieved 2009-05-19.
  36. ^ "SAP To Acquire Ariba For $4.3 Billion In Push Into Cloud". Bloomberg. 23 May 2012.
  37. ^ "Ariba, Form 8-K, Current Report, Filing Date Aug 29, 2012" (PDF). secdatabase.com. Retrieved Jan 13, 2013.
  38. ^ "Ariba Shareholders Approve Acquisition by SAP" (Press release). SAP AG. 29 August 2012.
  39. ^ "SAP closes $4.51 billion Ariba acquisition". Bloomberg Businessweek. October 1, 2012.
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