Ariba buys Quadrem in $150m deal

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22 November 2010 | Angeline Albert     

Spend management software company Ariba is to acquire rival Quadrem for $150 million.

Ariba hopes to use Quadrem’s supplier network to increase its market share. Quadrem has 60,000 suppliers and a large customer base, particularly in mining and heavy industry. Customers include Alcoa, Anglo American, Rio Tinto and Nestlé.

“The acquisition of Quadrem will enable us to further expand our network volume and reach, accelerate growth, and extend better commerce to more companies in more regions of the globe,” said Bob Calderoni, CEO of Ariba.

Quadrem’s website says the company manages an online network that connects more than 60,000 suppliers to 1,500 buyers, and handles more than $20 billion of orders annually.

Ariba will make an upfront payment of $75 million (£47 million) in cash and $50 million (£31 million) in stock, and a further payment of $25 million (£15.6 million) subject to performance.

The transaction, which is subject to regulatory approvals, has been approved by the boards of both companies and is expected to go through in the second quarter of Ariba’s fiscal year 2011.

Scott Singer, global head of procurement for Rio Tinto, which is a customer of both companies, said: “We look forward to… the delivery of even more robust solutions [to] enhance our procurement effectiveness and extend collaboration with our suppliers globally.”

  • Meanwhile, PRGX, a US-based business analytics and information services firm, announced the purchase of The Johnsson Group, a consultancy offering a range of procurement services. Until now, PRGX has operated solely within the retail sector, with more than three-quarters of the top 30 global retailers among its clients.
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