Feeds

SAP hopes to embiggen its cloud with Ariba slurp

Still seeking a secure foothold in fast-growing market

Intelligent flash storage arrays

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. ®

Security for virtualized datacentres

More from The Register

next story
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
The DRUGSTORES DON'T WORK, CVS makes IT WORSE ... for Apple Pay
Goog Wallet apparently also spurned in NFC lockdown
Cray-cray Met Office spaffs £97m on VERY AVERAGE HPC box
Only 250th most powerful in the world? Bring back Michael Fish
Microsoft brings the CLOUD that GOES ON FOREVER
Sky's the limit with unrestricted space in the cloud
'ANYTHING BUT STABLE' Netflix suffers BIG Europe-wide outage
Friday night LIVE? Nope. The only thing streaming are tears down my face
Google roolz! Nest buys Revolv, KILLS new sales of home hub
Take my temperature, I'm feeling a little bit dizzy
IBM, backing away from hardware? NEVER!
Don't be so sure, so-surers
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The hidden costs of self-signed SSL certificates
Exploring the true TCO for self-signed SSL certificates, including a side-by-side comparison of a self-signed architecture versus working with a third-party SSL vendor.