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Ariba Reaches Agreement to Acquire Assets of Quadrem

Ariba Inc., the vendor of software for supplier and spend management, has signed a definitive agreement to acquire Quadrem, a global supply network. Quadrem's service encompasses some 70,000 suppliers in 65 countries. It covers a wide range of industries, including natural resources, oil and gas and manufacturing. The company also runs a supplier identification and verification service that is complementary to Ariba Discovery, the Web-based service that connects buyers and suppliers around the world. Ariba said it will pay a total of $150m for Quadrem, consisting of an upfront payment of $75m in cash and $50m in stock, with a holdback of $25m in cash or stock, payable 36 months after the deal closes, subject to certain performance conditions. In addition, 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 closing conditions and regulatory approvals, has been approved by the boards of directors of both companies. It is scheduled to close in the second quarter of Ariba's fiscal year 2011, ending Mar. 31. Ariba's network currently consists of 325,000 customers. Announcement of the deal came two days after Ariba completed the sale of its BPO (business process outsourcing) sourcing unit to Accenture.

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Ariba Inc., the vendor of software for supplier and spend management, has signed a definitive agreement to acquire Quadrem, a global supply network. Quadrem's service encompasses some 70,000 suppliers in 65 countries. It covers a wide range of industries, including natural resources, oil and gas and manufacturing. The company also runs a supplier identification and verification service that is complementary to Ariba Discovery, the Web-based service that connects buyers and suppliers around the world. Ariba said it will pay a total of $150m for Quadrem, consisting of an upfront payment of $75m in cash and $50m in stock, with a holdback of $25m in cash or stock, payable 36 months after the deal closes, subject to certain performance conditions. In addition, 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 closing conditions and regulatory approvals, has been approved by the boards of directors of both companies. It is scheduled to close in the second quarter of Ariba's fiscal year 2011, ending Mar. 31. Ariba's network currently consists of 325,000 customers. Announcement of the deal came two days after Ariba completed the sale of its BPO (business process outsourcing) sourcing unit to Accenture.

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