This morning's press release:

 

Deal will expand depth and breadth of Ariba Network creating additional value for buyers and sellers around the world

 

Ariba, Inc. (Nasdaq: ARBA), the leading  provider of collaborative business commerce solutions, today announced  that it has signed a definitive agreement to acquire Quadrem, a  privately-held provider of one of the world's largest supply networks  and on-demand supply management solutions. With the acquisition, Ariba  further expands the depth and breadth of the Ariba® Network, its market-leading web-based trading community.

Ariba will pay a total of $150 million,  comprised of an upfront payment of $75 million in cash and $50 million  in stock, and a holdback payment of $25 million, subject to performance  conditions, payable 36 months after the close in either cash or stock.  Please see the 8-K for more detail in connection with mechanics of the  escrow and holdback payments. In addition, and related to the  transaction, Ariba will pay approximately $10 million to modify and  terminate aspects of a commercial arrangement previously entered into by  Quadrem.

The transaction, which is subject to  customary closing conditions and regulatory approvals, has been approved  by both companies' board of directors and is expected to close in the  second quarter of Ariba’s fiscal year 2011, ending March 31.

“Ariba’s on-demand commerce solutions and  global trading network have made it easier for businesses of all sizes  and industries to buy, sell, and manage cash. The acquisition of Quadrem  will enable us to further expand our network volume and reach,  accelerate growth, and extend better commerce to more companies in more  regions of the globe,” said Bob Calderoni, CEO, Ariba. “Quadrem has  proven its ability to build and monetize large-scale collaborative  commerce programs. We can leverage this experience to create additional  value for our customers and bring our proven solutions to Quadrem’s  existing customer base to enhance the value of their investments.”

With approximately 70,000 suppliers in 65  countries and large buyer customers including Alcoa, Anglo American, BHP  Billiton, Nestlé, Vale and Rio Tinto, Quadrem has a unique global  footprint and expertise in operating one of the world’s largest  on-demand supply networks. Quadrem’s 100% on-demand solutions service  customers across a range of industries, including: natural resources,  oil & gas and manufacturing. The company also operates a supplier  identification and verification offering that is complementary to Ariba  Discovery, a unique web-based service that helps to instantly connect buyers and suppliers around the world.

“In uniting our knowhow, solutions and  people, Quadrem and Ariba can deliver unparalleled network scale and  reach that enables buyers and sellers around the world to improve supply  chain performance and tap new business opportunities,” said Charles  Jackson, CEO, Quadrem. “Through the combined entities, companies will  have access to a truly global partner who can help them optimize and  extend buyer and supplier commerce and ultimately, the results that they  deliver.”

“As a customer of both Ariba and Quadrem we  look forward to the combination of the two companies and to the delivery  of even more robust solutions we can leverage to support our  operations, enhance our procurement effectiveness and extend  collaboration with our suppliers globally.” said Scott Singer, Global  Head of Procurement for Rio Tinto.

Conference Call and Webcast Information
Ariba will host a conference call to discuss  this transaction today at 8:00 a.m. ET.  To join the call, please dial  1-877-407-8031 in the United States and Canada, or 1-201-689-8031 if  calling internationally. A live web broadcast of the call will be  available on the investor relations section of Ariba’s website at:  www.ariba.com. The webcast may also be accessed by logging in at  http://www.vcall.com
A replay of the conference call will be  available shortly after the completion of the conference call through  January 18, 2011 and can be accessed by calling 1-877-660-6853 in the  United States and Canada or 1-201-612-7415 internationally and entering  account number: 286 and conference ID number: 361257.

About Quadrem
Quadrem (www.quadrem.com ) operates one of the world’s largest supply networks, connecting  buyers and suppliers by “digitizing” the many steps involved in buying  and selling products and services.  Since 2000 we have delivered 100% On  Demand solutions that enable our customers to rapidly connect and  collaborate to improve supply chain performance. Established in 2000,  Quadrem has locations in Australia, Brazil, Canada, Chile, France,  Mexico, The Netherlands, Peru, Singapore, South Africa and the United  States.

 

 

About Ariba, Inc.
Ariba, Inc. is the leading provider of collaborative business commerce  solutions. Ariba enables more efficient and effective buying, selling,  and cash management by combining industry-leading software as a service  (SaaS) commerce technology with the world's largest web-based global  trading community and expert capabilities and services to augment  internal resources and skills – all as a flexible, cloud-based service.  The Ariba® Commerce Cloud™ delivers everything needed to  control costs, increase sales, minimize risk, and enhance cash flow and  operations. More than 300,000 companies, including over 80 percent of  the Fortune 100, use Ariba's solutions to drive more efficient and  effective inter-enterprise commerce. Why not join them? For more  information on Ariba commerce solutions and the results they deliver,  visit www.ariba.com.