UPDATE: SAP's (SAP) America Unit to Buy Ariba (ARBA) for $45/Share

(Updated - May 22, 2012 2:59 PM EDT)

SAP's (NYSE: SAP) SAP America subsidiary entered into an agreement to buy Ariba (Nasdaq: ARBA) for $45 per share, or valued at about $4.3 billion.

The price represents a 20% premium over the May 21 closing price and a 19% premium over the one month volume weighted average price per share.

The transaction will be funded from SAP's free cash and a €2.4 billion term loan facility. The transaction is expected to close in the third quarter of calendar year 2012, subject to Ariba stockholder approval, clearances by relevant regulatory authorities and other customary closing conditions. The transaction is expected to be accretive to SAP's non-IFRS earnings per share in 2013.

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