Ariba Inc. to purchase the Agile Software Corp. for 79.19 times revenue

Weekly Corporate Growth Report, Feb 12, 2001

The Deal: Ariba Inc. has agreed to purchase the Agile Software Corp. for $2.55 billion. The transaction will allow Ariba to add collaboration capability to its services, allowing customers to communicate and coordinate product supply, design and other electronic-commerce functions.

Discussion: Agile Software Corp.'s Agile Anywhere, is a Web-based, collaborative software suite that helps global companies and their partners add, update and manage product content throughout the manufacturing supply chain. The company also offers procurement applications and provides consulting, implementation and training services, which account for about a third of sales. Agile Software targets markets with outsourced supply chains, as well as companies that manage manufacturing, sales and distribution over the Internet.

Ariba Inc.'s Web-based procurement software is used by some of the world's largest manufacturers, retailers and distributors to track and manage online supply purchases. Companies such as DuPont, Federal Express, Chevron and Honda use Ariba technology to automate buying through corporate intranets, channel purchases to preferred suppliers and connect buyers with suppliers and distributors. About 30 percent of its sales come from technical support and other related services.