![]() But the question I ask is – Would it not have been much more cost-effective to acquire the remaining position in a distressed Commerce One rather than paying a premium 10 years later to buy its chief competitor? Certainly, Ariba has evolved considerably over the past 10 years so a like-for-like comparison with the old Commerce One is not valid. Now, approximately 10 years later SAP is paying over $4 billion to acquire the same type of asset. ![]() Commerce One eventually declared bankruptcy wiping out the equity value SAP had obtained. But when Commerce One ran into financial troubles, SAP abandoned the struggling dot com. SAP invested a few hundred million in capital in Commerce One during the Internet bubble. The presentation materials issued following the announcement stated that “ Ariba will enable SAP to create the business network of the future by combining its large buyer & seller network with SAP’s more than 190,000 customers and deep business process expertise.” What I find particularly ironic about this transaction is that about 10 years ago, SAP had a significant equity stake in Ariba’s largest competitor – Commerce One. In addition to its suite of spend management and procure-to-pay applications, Ariba has built up one of the world’s largest business networks with over 700,000 members. ![]() ![]() Yesterday, SAP announced its intention to acquire B2B e-commerce vendor, Ariba for $4.3 billion. ![]()
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