Ariba, Inc. (NASDAQ:ARBA) Scores Sharp Gains On 20% Premium Selloff

  on May 23,2012 Posted in Featured ,Finance
 
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Ariba, Inc. (NASDAQ:ARBA) shares suddenly scored sharp gains on Tuesday after SAP AG (ADR) (NYSE:SAP) announced that one of its subsidiary, SAP America, Inc., signed a deal to takeover the cloud-based business commerce network Ariba, for $45.00 per share, making up an enterprise value of roughly $4.3 billion.

Pursuant to the agreement, Ariba’s buyer-seller collaboration network will be combined with SAP’s broad customer base and deep business process to create new models for business-to-business collaboration in the cloud.

The Ariba Board of Directors has unanimously provided approval to the transaction, representing 20% premium on per share over the May 21 closing price and a 19% premium over the one month volume weighted average price per share. The contract is expected to get completed in the third quarter of calendar year 2012.

Valuation measures included Ariba, Inc (NASDAQ:ARBA) total value in the stock market calculated after recent closing bell was $4.30 billion and enterprise value which is the acquisition value of a company retrieved from yahoo data was $4.10 billion. In trailing 12 months price to sales ratio, which is a ratio for valuing a stock relative to its own past performance, other companies or the market itself, was kept at 8.57.

To compare market capitalization and price/sales ratios across firms in a sector total value of SciQuest, Inc.(NASDAQ:SQI) in the stock market calculated after recent closing bell was $329.29 million and enterprise value which is the acquisition value of a company retrieved from yahoo data was $269.46 million. Last twelve month price to sales ratio for the company was 5.95.

Total value of Bottomline Technologies(NASDAQ:EPAY) in the stock market calculated after recent closing bell was $633.02 million and enterprise value which is the acquisition value of a company retrieved from yahoo data was -$514.69 million. In trailing 12 months price to sales ratio was maintained at 2.92.

Total value of Vocus, Inc (NASDAQ:VOCS) in the stock market calculated after recent closing bell was $306.91 million and enterprise value which is the acquisition value of a company retrieved from yahoo data was $282.89 million. In trailing 12 months price to sales ratio was maintained at 2.50.

 



 

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