SAP Ariba

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Not to be confused with ARIBA or Arriba.
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SAP Ariba

Type Subsidiary

Traded as Formerly NASDAQ: ARBA

Industry Internet Software & Services

Founded 1996; 24 years ago

Headquarters Palo Alto, California

U.S.

Area served Worldwide

Key people Robert M. Calderoni, Keith Krach

Products Cloud-based solutions, SAP Ariba Network,

Source-to-Pay Software, Contract Management
Software, Financial Solutions

Revenue $ 335.1 million (FY 2011) [1]

 Operating income $ -2.9 million (FY 2011)[1]

Net income $ 33.2 million (FY 2011)[1]

Total assets $ 913.1 million (FY 2011)[1]

Total equity $ 647.9 million (FY 2011)[1]

Number of 3,636 (December 2015)

employees

Parent SAP SE

Website www.ariba.com

SAP Ariba is an American software and information technology services company located in Palo
Alto, California. It was acquired by German software maker SAP SE for $4.3 billion in 2012.[2][3]

Contents

 1Company beginnings
 2Past acquisitions and competitors
 3AribaWeb
 4Acquisition by SAP
 5See also
 6References
 7External links

Company beginnings[edit]
Ariba (now SAP Ariba) was founded in 1996[4] by Bobby Lent, Boris Putanec, Paul Touw, Rob
Desantis, Ed Kinsey, Paul Hegarty, and Keith Krach[5] on the idea of using the Internet to enable
companies to facilitate and improve the procurement process. Beforehand, procurement had been a
paper-based, labor-intensive, and inefficient process for large corporations. The name Ariba is
a neologism, chosen by a branding company since it was easy to pronounce and spell. The pre-
launch name was Procuresoft.
Ariba went public in 1999 under Krach's leadership as CEO, and was one of the first business-to-
business Internet companies to do an IPO.[6] The company's stock more than tripled from the offering
price on opening day,[7][8] making the three-year-old company worth $4 billion. In 2000, the stock
value continued to climb, and Ariba's market capitalization was as high as $40 billion.[9] With the
bursting of the dot-com bubble, Ariba's stock price fell dramatically in July 2001 to its IPO level,
where it remained for the rest of its life as an independent company.

Past acquisitions and competitors[edit]

On December 17, 1999 Ariba announced it would acquire Atlanta-based TRADEX Technologies
Inc. in a stock swap valued then at $1.86 billion.[10][11][12][13] TRADEX was the leader in the nascent
Digital Marketplace Software field. The stock market liked the acquisition and the price of Ariba's
shares rose from $57 at the time of the announcement to $173 at closing on March 9, 2000, which
also marked the peak of the Internet Bubble. The 33.2 million shares that Ariba issued to buy
TRADEX were then worth $5.6 billion to TRADEX shareholders.
In January 2001 Ariba announced that it would acquire Agile Software in a $2.55 billion stock
swap.[14][15] By April, with Ariba facing a disappointing second quarter and cutting a third of its
workforce, the deal had fallen apart.[16][17]
In early 2004, Ariba acquired FreeMarkets[18] which gave the company a software package in the
upstream (sourcing) of the sourcing process.[19][20] In late 2007, Ariba bought the company Procuri for
$93 million, which enhanced the company's client base and on-demand abilities.[21][22][23]
In December 2008, Ariba announced that the U.S. District Court for the Eastern District of Texas had
issued an injunction against Emptoris,[24] which prohibits the company from infringing on two of
Ariba's patents related to overtime and bid ceilings in reverse auctions.[25] On 16 December 2008, the
court ordered Emptoris to pay an enhanced damages award of $1.4 million for willful infringement in
connection with Emptoris’ infringement of the two reverse auction-patents held by Ariba. This was in
addition to the 29 October 2008 jury award of $5 million in damages to Ariba,[24] bringing the total fine
to approximately $6.4 million, a significant penalty for Emptoris which earned approximately $50
million in revenue for 2008. In an Emptoris press release, that company noted that it had released a
new software "patch" that eliminates any infringement. The U.S. District Court, in February 2009,
issued an order noting that the "patch" is colorably different, effectively concluding the case.
In November, 2010, Ariba announced that it would acquire Quadrem, a privately held provider of one
of the world's largest supply networks and on-demand supply management solutions.[26][27] The
acquisition closed in January 2011.[28]
In October, 2011 Ariba announced the acquisition of b-process, a privately held French company
and European leader in electronic invoicing service provider, for approximately €35 million in
cash.[29][30]
In April, 2013, Ariba partnered with Medassets to "extend the latter's supply chain management and
outsourced procurement functionalities".[31]

AribaWeb[edit]
On February 19, 2009 Ariba announced AribaWeb,[32] an open source framework for Rich Internet
Applications. It is designed to generate a user interface automatically from
base Java or Groovy classes and includes Object-Relational Mapping features. It
also encapsulates AJAX functionality[33] and has a broad selection of UI widgets.

Acquisition by SAP[edit]
On May 22, 2012 the German business software maker SAP SE announced it planned to acquire
Ariba for an estimated $4.3 billion.[2] SAP said it would pay $45 a share. JPMorgan
Chase and Deutsche Bank AG advised SAP SE on the sale, while Morgan Stanley provided
financial counsel to Ariba.[34] Ariba's shareholders approved the acquisition on August 29,
2012,[35][36] and it was completed on October 1, 2012 for $4.4 billion.[3][37]

See also[edit]
 SAP Concur
  Fieldglass

References[edit]
1. ^ Jump up to:a b c d e "Ariba Inc 2011 Annual Report, Form 10-K, Filing
Date Nov 10, 2011" (PDF). secdatabase.com. Retrieved July 5, 2012.
2. ^ Jump up to:a b "Ariba, Form 8-K, Current Report, Filing Date May 22,
2012". secdatabase.com. Retrieved Jan 13, 2013.
3. ^ Jump up to:a b "Ariba, Form 8-K, Current Report, Filing Date Oct 1,
2012" (PDF). secdatabase.com. Retrieved Jan 13, 2013.
4. ^ Seeking Alpha. "5 Cloud Computing Takeover Targets Revisited."
February 14, 2012. Retrieved March 14, 2012.
5. ^ Ariba, Form S-1, Quarterly Report, Filing Date April 23, 1999,
Retrieved August 15, 2013
6. ^ Om Malik, Forbes. "Ariba's next big challenge: managing
hypergrowth." August 03, 1999. RetriGEPeved March 14, 2012.
7. ^ Larry Dignan, CNET News. "Update: Ariba soars up 291 percent in
IPO." June 23, 1999. Retrieved December 13, 2011.
8. ^ Chris Nerney, InternetNews. "Ariba IPO Keeps Hope Alive." June
24, 1999. Retrieved December 13, 2011.
9. ^ By Chris O'Brien, San Jose Mercury News. "O'Brien: Rising from the
dot-com dead, Ariba surprises us all." June 5, 2012. Retrieved May 7,
2013.
10. ^ By Brian Fonseca, Network World. "Ariba buys B2B company
Tradex for $1.86 billion." December 17, 1999. Retrieved May 7, 2013.
11. ^ "Ariba, Form 8-K, Current Report, Filing Date Dec 23, 1999".
secdatabase.com. Retrieved Jan 13, 2013.
12. ^ "Agreement and Plan of Reorganization - Ariba Inc. and Tradex
Technologies Inc". FindLaw.com. 29 January 2000. Retrieved 28
February 2011.
13. ^ Melanie Austria Farmer, CNET. "Ariba to expand Net market role
with Tradex." December 16, 1999. Retrieved December 13, 2011.
14. ^ "Ariba, Form 425, Filing Date Jan 29, 2001". secdatabase.com.
Retrieved Jan 13, 2013.
15. ^ "Ariba snaps up Agile Software for $2.55 billion". CNET News. 29
January 2001. Retrieved 21 December 2010.
16. ^ "Ariba, Form 8-K, Current Report, Filing Date Apr 3, 2001".
secdatabase.com. Retrieved Jan 13, 2013.
17. ^ "TECHNOLOGY BRIEFING: INTERNET; ARIBA AND INKTOMI
CUT EARNINGS". The New York Times. 3 April 2001. Retrieved 21
December 2010.
18. ^ "COMPANY NEWS; ARIBA WILL BUY FREEMARKETS FOR $493
MILLION". The New York Times. 24 January 2004. Retrieved 21
December 2010.
19. ^ "Ariba, Form 8-K, Current Report, Filing Date Jan 23, 2004" (PDF).
secdatabase.com. Retrieved Jan 13, 2013.
20. ^ "Ariba, Form 8-K, Current Report, Filing Date Jul 15, 2004".
secdatabase.com. Retrieved Jan 13, 2013.
21. ^ "Ariba, Form 8-K, Current Report, Filing Date Sep 20, 2007" (PDF).
secdatabase.com. Retrieved Jan 13, 2013.
22. ^ "Ariba Announces Definitive Agreement to Acquire
Procuri". Business Wire. 20 September 2007. Retrieved 21
December 2010.
 23. ^ By Matt Marshall, Venture Beat. “Ariba buys supply chain
management software co., Procuri for $93M.” September 21, 2007.
Retrieved April 29, 2013.
24. ^ Jump up to:a b "Ariba, Form 10-Q, Quarterly Report, Filing Date Feb
6, 2009" (PDF). secdatabase.com. Retrieved Jan 13, 2013.
25. ^ Wilson, Deborah R. (23 December 2008). "Ariba Lawsuit Delivers a
Moderate Blow to Emptoris". Gartner. Retrieved 21 December 2010.
26. ^ "Ariba, Form 8-K, Current Report, Filing Date Nov 18, 2010".
secdatabase.com. Retrieved Jan 13, 2013.
27. ^ "Ariba acquires Quadrem to bolster network". CNET News. 18
November 2010. Retrieved 13 September 2011.
28. ^ "Ariba, Form 8-K, Current Report, Filing Date Jan 27, 2011" (PDF).
secdatabase.com. Retrieved Jan 13, 2013.
29. ^ "Ariba, Form 8-K, Current Report, Filing Date Oct 19, 2011".
secdatabase.com. Retrieved Jan 13, 2013.
30. ^ Patel, Vishal (October 2011). "Voulez-Vous eInvoice? Ariba buys b-
process". Ardent Partners. Retrieved 28 October2011.
31. ^ The Paypers. “Ariba teams up with MedAssets.” April 9, 2013.
Retrieved April 29, 2013.
32. ^ Varhol, Peter (19 February 2009). "AribaWeb Framework becomes
open source". Retrieved 2009-05-19.
33. ^ "Ariba Open Sources Killer Framework for Web App
Development". Business Wire. 19 February 2009. Retrieved 2009-05-
19.
34. ^ "SAP To Acquire Ariba For $4.3 Billion In Push Into Cloud".
Bloomberg. 23 May 2012.
35. ^ "Ariba, Form 8-K, Current Report, Filing Date Aug 29, 2012" (PDF).
secdatabase.com. Retrieved Jan 13, 2013.
36. ^ "Ariba Shareholders Approve Acquisition by SAP" (Press release).
SAP AG. 29 August 2012.
37. ^ "SAP closes $4.51 billion Ariba acquisition". Bloomberg
Businessweek. October 1, 2012.

External links[edit]
 Official website
 AribaWeb website
 Ariba SEC Filings

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