The deal continues Germany-based SAP’s rivalry with database maker Oracle Corp. Both companies are buying up smaller ones that, like Ariba, provide software that’s hosted on remote servers, in the so-called “cloud.” Cloud-based applications remove the need for businesses to install and run software in-house.
In April, Redwood Shores, Calif.-based Oracle closed on the $1.9 billion acquisition of Taleo Corp., which provides cloud-based software that helps companies recruit and manage employees.
SAP said it is offering $45 per share for Sunnyvale, Calif.-based Ariba. Ariba shares closed Tuesday at $44.87, up $7.23, or 19 percent. The price indicates that investors expect the deal to be consummated at the price SAP is offering.
SAP shares fell 10 cents to $58.69 per share.
Ariba’s business-to-business network connects 730,000 companies and transactions worth $319 billion per year, SAP said. It said it would keep the network open, letting companies that use competing business software packages from Oracle and Microsoft Corp. connect to it.