Ariba said late Monday that it will acquire SupplierMarket.com, a provider of online collaborative sourcing technologies, for around $580 million in stock.
Ahead of the announcement, Ariba (Nasdaq: ARBA) shares closed up 3 5/8 to 92 3/16.
Company officials said it will issue 6.3 million shares of stock for all the shares of SupplierMarket.com, a privately held company that registered in March with the Securities and Exchange Commission for an initial public offering.
SupplierMarket.com, which planned to use the ticker "SMKT," helps buyers and suppliers of direct and indirect materials locate new trading partners, negotiate purchases and collaborate on the Internet.
The deal is expected to close sometime in the third calendar quarter of this year.
Burlington, Massachusetts-based SupplierMarket.com employs more than 150 people and has more than 7,700 registered buyers and more than 12,000 registered suppliers.
"We believe sourcing is the next strategic high ground for B2B -- it is fundamental to our customers and partners as we work together to build liquidity in the B2B economy," said CEO Keith Krach in a prepared release.
Last quarter, Ariba topped analysts' estimates, losing $11.5 million, or 6 cents a share, on sales of $40 million.
Its shares moved up to a 52-week high of 183 5/16 in March after falling to a low of 16 9/16 last June.
Twenty-five of the 26 analysts following the stock rate it either a "buy" or "strong buy."
First Call Corp. consensus pegs it for a loss of 8 cents a share in its third quarter and 26 cents a share in the fiscal year.