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
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
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.