Ariba on Thursday said it will acquire Quadrem, a privately-held company that provides on-demand supply management software.
The company said in a statement that it will pay $150 million, including $75 million in cash and $50 million in stock with the remainder based on performance goals.
According to Ariba, the Quadrem purchase will expand Ariba's supply network and trading community. The deal is expected to close in the quarter ending March 31.
Quadrem has 70,000 suppliers in 65 countries. That network will give Ariba a larger global footprint. Quadrem counts Alcoa, Nestele and Rio Tinto as customers and has good footing in the oil and gas, manufacturing and natural resources industries.
Indeed, Bob Calderoni, CEO of Ariba, said the deal is all about global reach. Calderoni said:
The acquisition of Quadrem will enable us to further expand our network volume and reach, accelerate growth, and extend better commerce to more companies in more regions of the globe.