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. ®

Bridging the IT gap between rising business demands and ageing tools

More from The Register

next story
Apple fanbois SCREAM as update BRICKS their Macbook Airs
Ragegasm spills over as firmware upgrade kills machines
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Attack of the clones: Oracle's latest Red Hat Linux lookalike arrives
Oracle's Linux boss says Larry's Linux isn't just for Oracle apps anymore
THUD! WD plonks down SIX TERABYTE 'consumer NAS' fatboy
Now that's a LOT of porn or pirated movies. Or, you know, other consumer stuff
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
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.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.