Feeds

SAP hopes to embiggen its cloud with Ariba slurp

Still seeking a secure foothold in fast-growing market

Application security programs and practises

Software giant SAP is hoping to beef up its cloud with an offer to slurp business commerce company Ariba for $4.3bn.

The acquisition should give SAP a boost as it tries to claw its way into the cloud, currently dominated by arch-rival Oracle and Salesforce.com.

SAP has been chomping businesses left, right and centre as it attempts to up its revenues and become more cloudy, but Ariba could prove a difficult firm to catch. Many of Ariba's customers use Oracle services, so it wouldn't be unheard of for the firm to swoop in with a better offer.

SAP expects to close the deal, providing there's no interference, in the third quarter this year, financing the buyout with cash and a 2.4bn loan.

Ariba's price tag values the company at over nine times its total revenues for the fiscal year 2011 and at $45 a share that's 20 per cent over the 21 May close.

SAP said that once the deal was done, it was planning to consolidate all its cloud-related supplier assets under Ariba. Should the deal go through, the same management team would stay at the company and would operate as a subsidiary of SAP. ®

Eight steps to building an HP BladeSystem

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
The triumph of VVOL: Everyone's jumping into bed with VMware
'Bandwagon'? Yes, we're on it and so what, say big dogs
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.