Ariba to Acquire Agile

Ariba Inc., which makes software for business procurement, said it would buy Agile Software Corp., whose software helps manufacturers share information with their suppliers and partners, in a stock swap worth more than $2 billion. Ariba’s software enables manufacturers to buy custom-made materials and allows companies to buy general office supplies. With the addition of Agile, Ariba also will offer software allowing manufacturers to share information with their partners and suppliers. It also will allow manufacturers to buy standard supplies. “With the merger, we entered into the next wave of B2B commerce,” Ariba President and Chief Operating Officer Larry Mueller said. He estimated that the global business-to-business commerce infrastructure market will be valued at $18 billion by 2003 and $50 billion in 2005, and he said Ariba wants to be the leader there. Under the terms of the deal, Mountain View, Calif.-based Ariba will swap 1.35 of its shares for each Agile share. Agile shares jumped $7.56, or more than 17%, to close at $50.38, while shares of Ariba fell $1.63 to close at $38.38, both on Nasdaq. The boards of both companies have approved the deal, but it is still subject to regulatory and shareholder approval, Ariba said.