SUNNYVALE (CBS/AP) — Business software maker SAP AG says it will buy spending-management software company Ariba Inc. for about $4.51 billion.
SAP said it is offering $45 per share for the Sunnyvale company. That’s a premium of 19.6 percent from Monday’s closing price of Ariba shares. Ariba had 100.2 million shares on the market as of March 31, according to FactSet.READ MORE: Flash Flood Watches Issued As Storm Aims at Fire-Scarred Northern California
Ariba’s board has approved the deal and SAP says it should close during the third quarter if Ariba shareholders approve the sale.
SAP, based in Walldorf, Germany, said the deal is worth about $4.3 billion.
Ariba’s revenue grew almost 40 percent to $444 million in its latest fiscal year. SAP says the deal should add to its adjusted profit in 2013. The company has around 2,600 employees.READ MORE: Magnitude 2.8 Earthquake Rattles East Bay Near Hercules
(Copyright 2012 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)MORE NEWS: White House Delays Release of JFK Assassination Files