Ariba, a provider of collaborative business commerce solutions, has signed a definitive agreement to acquire Quadrem, a privately-held provider of supply networks and on-demand supply management offerings for a total $150m.
Ariba will make an upfront payment of $75m in cash and $50m in stock, and a holdback payment of $25m, subject to performance conditions, payable 36 months after the close in either cash or stock.
In addition, and related to the transaction, Ariba will pay approximately $10m 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, is expected to close in the second quarter of Ariba’s fiscal year 2011, ending 31 March.
Ariba CEO Bob Calderoni said that the acquisition of Quadrem will enable them to further expand their network volume and reach, accelerate growth, and extend better commerce to more companies in other regions of the globe.
Quadrem provides on-demand offerings service to customers across a range of industries, including natural resources, oil & gas and manufacturing, and also operates a supplier identification and verification offering that is complementary to Ariba Discovery, a Web-based service that helps to connect buyers and suppliers around the world.
Quadrem CEO Charles Jackson said in uniting their 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.
"Through the combined entities, companies will have access to a truly global partner who can help them optimise and extend buyer and supplier commerce and ultimately, the results that they deliver," Jackson said.