SAP Ariba

SAP Ariba is SAP's procurement and business-commerce software brand, originating from the former Ariba company. It focuses on digitizing the source-to-pay process: the activities through which organizations identify suppliers, negotiate and award business, manage purchasing, receive goods or services, and process invoices and payments. Its proposition is built around replacing fragmented, paper-heavy and labor-intensive procurement practices with connected cloud applications and a network that links buying organizations with suppliers. The business was founded in 1996 by Bobby Lent, Boris Putanec, Paul Touw, Rob Desantis, Ed Kinsey, Paul Hegarty and Keith Krach. The founders believed that the emerging internet could make corporate purchasing more efficient and could allow companies to collaborate electronically with suppliers. The venture was initially called Procuresoft, while the name Ariba was later created as a short, pronounceable brand name. Under Krach's leadership, Ariba became one of the early business-to-business internet companies to complete an initial public offering, doing so in 1999. Its market value rose sharply during the dot-com expansion before the technology-market downturn caused its share price and valuation to fall substantially in 2001. Ariba expanded its capabilities through acquisitions. Tradex Technologies added digital-marketplace software at the height of the internet boom. The company later acquired FreeMarkets, strengthening its upstream sourcing and strategic-procurement functionality, and bought Procuri to expand its customer base and on-demand procurement offering. Quadrem contributed a large supply-network and supply-management business, while the acquisition of French electronic-invoicing provider b-process extended Ariba's reach into e-invoicing. An attempted acquisition of Agile Software was announced in 2001 but did not close. SAP announced its agreement to acquire Ariba in May 2012. Ariba shareholders approved the transaction in August, and the acquisition completed on October 1, 2012. The deal was reported to be worth approximately $4.4 billion at completion, following SAP's announced offer of approximately $4.3 billion. After the transaction, Ariba became part of SAP's cloud and procurement portfolio and was marketed under the SAP Ariba brand. Ariba's independent public-company identity was replaced by a SAP-owned enterprise-software brand. Current products center on cloud delivery, commonly referred to as the SAP Ariba On Demand suite. It supports sourcing, supplier discovery and collaboration, purchasing, contract-related workflows, invoicing and network-based transactions. SAP also connects Ariba with other SAP applications and complementary enterprise software. In 2022, SAP Ariba announced a strategic relationship with contract-lifecycle-management specialist Icertis, including an undisclosed minority equity investment and a joint product roadmap. SAP Ariba's network model is central to its positioning. SAP reported that, as of June 2022, the SAP business network associated with Ariba supported more than 5.3 million buyer and supplier companies and facilitated approximately $3.75 trillion in annual transaction volume. These figures describe broader network activity reported by SAP rather than standalone revenue for the SAP Ariba brand. The platform primarily targets large, complex organizations that need procurement control, supplier connectivity, spend visibility, electronic documents and integration with financial or enterprise resource planning systems.

Ariba emerged in 1996 from a group of founders who sought to apply internet technology to corporate procurement. At the time, purchasing in large organizations was commonly dependent on paper documentation, manual approvals and disconnected supplier interactions. The founders' concept was to create software and online connectivity that could make sourcing and purchasing more structured and efficient. The business was initially known as Procuresoft, but a branding exercise produced the name Ariba. The company became a prominent early business-to-business internet venture. It went public in 1999 under chief executive Keith Krach, one of the founders. Investor enthusiasm during the dot-com period drove a rapid increase in the company's valuation. Ariba's acquisition of Tradex Technologies, announced in December 1999 and completed in March 2000, extended its digital-marketplace capabilities. The proposed purchase of Agile Software in 2001 was not completed, and Ariba subsequently reduced its workforce during a difficult period for technology companies. Ariba's later development emphasized procurement software and network services rather than the speculative marketplace valuation associated with the dot-com era. Its 2004 acquisition of FreeMarkets added upstream sourcing capabilities. Procuri, acquired in 2007, strengthened Ariba's on-demand procurement offering and customer reach. In 2010 Ariba announced the acquisition of Quadrem, a supply-network and supply-management provider; the transaction closed in January 2011. In October 2011, Ariba announced the purchase of b-process, a French electronic-invoicing provider, for approximately €35 million in cash. SAP agreed to acquire Ariba in 2012. SAP announced the proposed transaction on May 22, Ariba shareholders approved it on August 29, and the deal closed on October 1. After the acquisition, Ariba operated as SAP Ariba and became part of SAP's broader cloud, procurement and business-network strategy. The brand's role shifted from that of an independent public company to a specialized SAP enterprise-software platform. SAP Ariba's post-acquisition model has focused on cloud applications and network-based transactions. The offering covers sourcing, buying, supplier collaboration, invoicing and related source-to-pay processes. SAP has described the associated business network as supporting millions of buyer and supplier organizations. In 2022, SAP Ariba announced a partnership with Icertis, including an undisclosed minority investment and a shared roadmap for contract-lifecycle-management capabilities. The platform remains positioned for organizations seeking centralized procurement governance, supplier connectivity, electronic transactions and integration with enterprise systems.

• 2022

  Icertis partnership announced

  [1]SAP Aribaen.wikipedia.org

  SAP Ariba announces a partnership and minority investment in Icertis focused on contract-lifecycle-management integration.

• 2012

  SAP acquisition completed

  [1]SAP Aribaen.wikipedia.org

  SAP SE completes its acquisition of Ariba, bringing the business into SAP's portfolio.

• 2011

  Quadrem and b-process expansion

  [1]SAP Aribaen.wikipedia.org

  Ariba completes the Quadrem transaction and announces the acquisition of electronic-invoicing provider b-process.

• 2007

  Procuri acquisition

  [1]SAP Aribaen.wikipedia.org

  Ariba acquires Procuri to enhance its on-demand procurement capabilities and customer reach.

• 2004

  FreeMarkets acquisition

  [1]SAP Aribaen.wikipedia.org

  Ariba expands into upstream sourcing through the acquisition of FreeMarkets.

• 2000

  Tradex acquisition closes

  [1]SAP Aribaen.wikipedia.org

  The acquisition of Tradex Technologies is completed, adding digital-marketplace software.

• 1999

  Initial public offering

  [1]SAP Aribaen.wikipedia.org

  Ariba becomes one of the early business-to-business internet companies to conduct an IPO.

• 1996

  Ariba is founded

  [1]SAP Aribaen.wikipedia.org

  The company is established around the idea of using the internet to improve corporate procurement and supplier interaction.

Enterprise procurement and source-to-pay cloud platform connecting buyers, suppliers and procurement workflows.

• Business-to-business supplier network

  SAP Business Network

  The network connects buying organizations and suppliers for electronic commerce, collaboration and transaction processing. It is the connectivity layer associated with SAP Ariba's marketplace and procurement ecosystem, helping participants exchange business documents and manage supplier relationships at scale.

• Strategic sourcing software

  SAP Ariba Sourcing

  SAP Ariba Sourcing supports procurement teams in identifying suppliers, preparing sourcing events, comparing bids and managing competitive purchasing processes. Its capabilities reflect Ariba's historical strength in online sourcing and reverse-auction workflows.

• Procure-to-pay software

  SAP Ariba Buying and Invoicing

  This offering supports purchasing workflows from requisition and approval through ordering, receipt and invoice processing. It is designed to give enterprises greater control over indirect and direct purchasing while connecting buying activity with suppliers and financial systems.

• Cloud procurement software suite

  SAP Ariba On Demand suite

  The On Demand suite represents SAP Ariba's cloud-delivered application model. It brings together procurement-related functions such as sourcing, supplier collaboration, buying and invoicing, and reflects the brand's shift away from independently deployed legacy versions toward subscription-based cloud services.

• 2022

  Icertis partnership and investmentStrategy

  Background

  Contract lifecycle management is closely connected to sourcing, procurement and supplier-management workflows.

  Action taken

  SAP Ariba announced a partnership with Icertis and an undisclosed minority investment, with a joint roadmap for connected capabilities.

  Aftermath

  The arrangement broadened SAP Ariba's strategic relationship with a specialist contract-management provider.

  Source

• 2012

  SAP acquires AribaM&A

  Background

  Ariba had developed a significant procurement-software and supplier-network business, while SAP was expanding its cloud portfolio and sought a stronger position in business-to-business commerce.

  Action taken

  SAP announced a proposed acquisition in May 2012, received shareholder approval in August, and completed the transaction on October 1, 2012.

  Aftermath

  Ariba became SAP Ariba and was integrated into SAP's cloud procurement and business-network portfolio.

  Acquisition consideration. Approximately $4.3 billion announced offer → Approximately $4.4 billion reported at completion (2012)

  Source

1. 1SAP Aribaen.wikipedia.org