Ariba to acquire Agile for $2.55 billion

Business-to-business electronic commerce software developer Ariba Inc. is to buy collaborative software developer Agile Software Corp. in an all-stock deal worth around $2.55 billion, Ariba announced Monday.

The move will, among other things, enable Ariba to extend its B2B Commerce Platform, the company said in a statement.

Under the terms of the agreement, each share of Agile common stock will be converted into 1.35 shares of Ariba stock, valuing the deal at around $2.55 billion based on Ariba's Friday closing price of $40. Ariba expects to complete the acquisition in the third quarter of its fiscal year 2001, but does not expect it will boost earnings until fiscal year 2002. The deal has the support of both companies' boards of directors, but has yet to receive stockholder and governmental approvals.

Agile develops software which supports collaborative manufacturing, tracking information such as bills of materials, formulas and recipes, specifications and drawings. By integrating this into Ariba's e-commerce software, the company will be able to manage the entire life cycle of a product, Ariba said in the statement.

The companies plan to extend their software systems to make them support ERP (enterprise resource planning) and supply chain management systems. They also plan to make their respective online services, Ariba Commerce Services Network and the MyAgile network, interoperable.

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