Software maker Ariba agrees to buy Quadrem
Spending-management software maker. Ariba Inc. announced Thursday that it will buy Quadrem, a privately held supply chain management company, for $150 million.
Ariba, based in Sunnyvale, Calif., will pay $75 million in cash up front for Amsterdam-based Quadrem, along with $50 million in stock and another payment of $25 million, due within 36 months of the acquisition's close. That $25 million may be paid in cash or stock. Ariba also will pay $10 million to modify and terminate aspects of a commercial agreement that Quadrem entered into earlier.
The deal will expand the features offered in Ariba's software, as well as grant it access to the 70,000 suppliers with whom Quadrem does business.
Shares in Ariba Inc. surged 75 cents, or 4 percent, to $19.30 on the news of its pending acquisition.
The companies expect the deal to close during the second quarter of Ariba's fiscal 2011 year, which ends March. 31.