Ariba, Inc. fell 2 1/8 to 90 1/16 Tuesday after the Mountain View, California-based e-commerce software maker said it signed a definitive agreement to acquire SupplierMarket.com, a privately-held online marketplace for businesses.
Ariba will issue about 6.3 million shares to buy SupplierMarket, which is based in Burlington, Massachusetts. The companies expect to close the deal in the third quarter.
“With SupplierMarket.com, Ariba gains a robust collaborative sourcing platform and related domain expertise that have been proven to effectively automate and enhance processes for identifying and negotiating the optimal supply chain for both direct and indirect materials,” said Tim Minahan, research director of e-business at Aberdeen Group.
Minahan added that the acquisition “will significantly complement the Ariba platform, and should appeal equally to buyers, suppliers and market makers alike.”