Ariba Monday revealed plans to acquire Agile Software Corp. in a
stock-for-stock deal valued at $2.55 billion.
Under the terms of the agreement, each share of Agile common stock will
be converted into 1.35 shares of Ariba. Ariba’s common stock is valued at
$40 a share based on its stock market closing price on January 26, 2001.
Ariba, a B2B ecommerce platform and network service provider, intends to
implement Agile’s software solutions and expand its offerings of
inter-enterprise solutions, according to Keith Krach, chairman and CEO of
Ariba.
“The acquisition uniquely positions us to deliver a new generation of
solutions for managing the interactive value chain,” he said. “These
solutions provide immediate value with proven ROI.
“In addition, the acquisition expands our product footprint, adds to our
customer base and offers us new marketing activities,” he said.
Following the merger, the combined companies anticipate offering
solutions that extend eprocurement functionality, streamline direct and
indirect materials sourcing, negotiations a contract management; and
implement full-cycle collaborative commerce throughout their own value
chains.
The acquisition is expected to be completed by the third quarter of
Ariba’s fiscal year.