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Ariba, Inc. - NASDAQ

4/24/2014, 6:20 AM ET
Quote & Analysis Breaking News StockTalk Description
Sector: Technology
Country: United States

Ariba is the leading provider of on-demand spend management solutions. Our mission is to transform the way companies of all sizes, industries, and geographies operate by delivering software, service, and network solutions that enable them to holistically source, contract, procure, pay, manage, and analyze their spend and supplier relationships. Delivered on demand, our enterprise-class offerings empower companies to achieve greater control of their spend and drive continuous improvements in financial and supply chain performance. Ariba® Spend Management™ solutions are easy to use, cost effective and quick to deploy and integrate with enterprise resource planning (“ERP”) and other software systems. More than 1,000 companies, including more than half of the companies on the Fortune 500 list published in April 2009, use Ariba solutions to manage their spend from sourcing and orders through invoicing and payment.

Ariba was incorporated in Delaware in September 1996. Our principal executive offices are located at 807 11th Avenue, Sunnyvale, California 94089.

Industry Background

In the last decade, technology-based solutions have emerged to help companies increase the efficiency of the procurement and cash management processes and more effectively manage their spend. These solutions allow organizations to automate critical tasks such as identifying global suppliers, sourcing goods and services, negotiating and managing contracts, processing invoices and payments and managing trading relationships.

Procurement organizations were among the first to embrace spend management solutions as a way to achieve corporate savings targets. Today, finance departments are leveraging them to drive improved cost management, business unit decision making and planning, budgeting, forecasting and cash and working capital management. Legal departments are implementing them to more effectively author and manage contracts and IT departments are deploying them to enhance the value of existing systems and increase returns on investment.

Sourcing and Procurement Software Market

In its most recent Supply Management Market Sizing Report, AMR Research, a third-party research firm, projected the supply management market to grow at 10% Compound Annual Growth Rate (“CAGR”), becoming a $4.3 billion market in 2012. Further, it noted that the highest growth segments over the next five years are projected to be sourcing (projected to grow at a 10% CAGR) and indirect supply management (projected to grow at an 11% CAGR). Contract management is expected to grow substantially in 2010 as buying companies increasingly become aware of this application’s strength. The supply management license, alternate revenue and market share by company grew 45% in the $1 billion or more customer revenue market. Actual annual growth rates may differ significantly from those forecast by AMR Research.