Ariba Announces Definitive Agreement to Acquire Procuri
Published September 30th, 2007
Ariba, Inc. (Nasdaq: ARBA) today announced that it has signed a definitive agreement to acquire Procuri Inc. a privately-held provider of on-demand supply management solutions. With the acquisition, Ariba extends its position as the leading provider of spend management solutions to companies of all sizes and accelerates its traction in the rapidly growing mid-market.
Under the terms of the agreement, Ariba will deliver $93 million in consideration at closing, consisting of equal amounts of cash and stock, of which $14M of the cash will be placed in escrow to secure indemnity obligations of Procuri stockholders. Ariba will also pay off approximately $8 million of Procuri’s debt. The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close in the first quarter of Ariba’s fiscal year 2008, ending December 31, 2007. The definitive agreement has been approved by both companies’ board of directors.
“Ariba has been very successful in its shift to a Software as a Service (SaaS) business model, growing year over year subscription software backlog by 60% in the past quarter. This acquisition will accelerate our growth, give us scale in our on-demand business and strengthen our position in the fast growing mid-market,†said Bob Calderoni, CEO, Ariba. “Procuri has proven its ability to sell on-demand solutions to growing enterprises and has built an impressive list of customers. We can leverage this customer base and experience along with our solutions to further penetrate and lead the fastest growing segment of the spend management market.â€
With more than 300 customers including Barclays Bank PLC, The Boots Company PLC, ConAgra Foods, Domino’s Pizza, PMC, Inc., Hess Corporation, JetBlue Airways, Novation LLC, Sun Microsystems, UPM-Kymmene, and United Parcel Service of America, Inc. (UPS), Procuri has extensive experience in delivering on-demand solutions to companies across a range of industries and geographies. Procuri’s strength in selling software-as-a-service and traction among growing enterprises such as AirportSmart LTD, Conn-Selmer, LeChase Construction Services LLC, Health & Hospital Corporation of Marion County, and Stonyfield Farm will enable Ariba to expand its market share and deliver on its promise to allow all companies regardless of their size to realize the benefits that spend management provides.
“The combination of Procuri and Ariba creates the clear leader in the global market for on-demand spend management solutions,†said Mark Morel, president and CEO, Procuri. “In uniting the industry’s best-in-class technologies and people, the combined company will deliver a world-class, end-to-end spend management platform and services that enable companies to control spend, mitigate risks, and improve performance across their global supply chains.â€
About Ariba, Inc.
Ariba, Inc. is the leading provider of spend management solutions to help companies realize rapid and sustainable bottom line results. Successful companies around the world in every industry use Ariba Spend Managementâ„¢ software and services. Ariba can be contacted in the U.S. at 1.650.390.1000 or at www.ariba.com
About Procuri Inc.
Procuri leads the On Demand Supply Management industry with more than 300 customers of all sizes, industries, geographies and spend categories. Customers include Eastman Kodak, ITT Industries, Air France-KLM, The McGraw-Hill Companies, Newell Rubbermaid, Sun Microsystems and Toyota Motor Sales. Procuri’s On Demand solutions for spend analysis, supplier management, strategic sourcing, contract management and compliance are comprehensive, cost effective and instantly available. For more information, call 1-877-360-1600 or visit www.procuri.com.
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