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by Stephanie Neil, MA Editorial Staff
Posted on Monday, September 24, 2007 6:21:00 PM Sign Up to receive Daily News Alerts in your E-mail Inbox    | Abstract: | Purchase of Procuri furthers Ariba's growth plans in both the mid-market and the software-as-a-service field.
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| Keywords: | Ariba acquisition, ariba's acquisition |
Ariba Inc., a purveyor of spend management software, last week announced that it would buy Procuri Inc., an on-demand supplier of supply chain management solutions, in a move intended to strengthen Ariba's foothold in the mid-market as well as its software-as-a-service (SaaS) model. Ariba will pay $101 million for Procuri — $93 million in equal amounts of cash and stock, and a payoff of $8 million of Procuri's debt. Ariba executives expect the deal — which is expected to close in December — to be accretive by the end of the company's 2008 fiscal year. Spend management software tracks every dollar spent on services, direct materials, and indirect cost. Manufacturers are increasingly interested in controlling costs due to inflation, regulations, and global competition. As a result, Ariba officials are bullish on the prospects for the sector, pegging the growth rate at 20% over the next several years. [Click to continue] |
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