SAP AG plans to buy Ariba in a deal which will value the company at $4.3 billion, in its latest act to give Oracle an edge. Shares in Ariba, which were halted briefly, leapt 20 percent to SAP’s offer price of about $45 per share.
“This deal puts them more on the radar screen and gives them another big customer base they can sell additional services into. These are not inexpensive moves but it signals they are really tilting more toward the cloud,” said Evercore analyst Kirk Materne.
Cross Research analyst Richard Williams said: “Strategically it’s a valuable asset and would disadvantage Oracle if SAP were to close the deal, so I can see a case for why Oracle would feel the need to enter into the bidding to protect its own potential growth opportunities.”