Accenture Acquiring Ariba's Sourcing Services and Business Process Outsourcing Assets

Consultancy looks to beef up sourcing and procurement services, while Ariba focuses on becoming a network company with on-demand software

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New York — October 6, 2010 — Consultancy Accenture has agreed to acquire the sourcing services and business process outsourcing (BPO) services assets of spend management specialist Ariba as the consultancy looks to beef up its sourcing and procurement services while Ariba focuses on becoming a network company with on-demand software.

Under the terms of the agreement, upon the closing of the acquisition, Accenture will take ownership of these assets, which include Ariba's category expertise, sourcing process expertise and strategic sourcing execution resources, strengthening Accenture's position as a provider of sourcing and procurement consulting and outsourcing services.

Approximately 160 Ariba employees are expected to join Accenture upon the closing of the transaction. The acquisition, which is subject to customary closing conditions, is expected to close within Ariba's quarter ended December. The purchase price is $51 million, $12 million of which is subject to escrow to be released based on "the assignment and performance of certain assets."

"Ariba is a leader in spend management and this acquisition will extend and strengthen Accenture's existing sourcing and procurement services by adding deeper category expertise, highly scalable global sourcing service delivery operations and proprietary sourcing databases, benchmarks and technologies," said Mike Salvino, group chief executive for BPO at Accenture, in the company's statement on the deal. "We continue to invest in our core BPO business by adding new capabilities that combine both our BPO and management consulting offerings to create value for the Ariba customer base and all of our clients."

Ariba said it would retain its sourcing technology and the resources within its Global Services organization that are dedicated to software implementation, and that it would continue to provide customers with services around their use of Ariba's solutions.

"In divesting our sourcing services and BPO assets and expanding our partner ecosystem to include world-class organizations like Accenture, Ariba can deliver on its strategy to provide companies with access to network-based solutions that allow them to more efficiently and effectively buy, sell and manage their cash," said Kevin Costello, president of Ariba, in the joint statement. "We remain committed to delivering innovative technologies — including sourcing applications — that enhance the entire commerce process."

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