Ariba completes sale of sourcing and outsourcing services to Accenture

November 22, 2010  |  Electronic Invoicing, Invoice Automation

Ariba 230x200Ariba, the leading provider of collaborative business commerce solutions, today announced that it has completed the sale of its sourcing services and business process outsourcing (BPO) services assets to Accenture.

“The divestment of our sourcing services and BPO services assets is a very positive step in the evolution of Ariba that puts us one step closer to our goal of becoming a network company with on-demand solutions,” said Kevin Costello, President, Ariba.

Originally announced on October 6, the acquisition gives Accenture ownership of Ariba’s category expertise, sourcing process expertise and strategic sourcing execution resources. Ariba has retained its sourcing technology and the resources within its Global Services organization that are dedicated to software implementation, enablement and adoption. Ariba will continue to provide customers with services that help them maximize their use of Ariba’s solutions and the results that they deliver.

Updated Financial Outlook for the Divestment

Ariba had previously estimated the contribution to fiscal year 2011 of the divested business to be approximately $40M and $0.07 in Non-GAAP revenue and EPS respectively. Based on these numbers, the Company is updating its previously provided guidance to reflect the close of the divested business.

For fiscal year 2011, Ariba now expects total revenues to be approximately $347 million +/- $5 million. The subscription software and maintenance revenue outlook remains unchanged at $266.5 million to $270.5 million. The services revenue outlook is now expected to be $78.5 million +/- $5 million. Accordingly, Non-GAAP EPS is now expected to be in the range of $0.77 to $0.81, and cash flow from operations before lease loss and restructuring charges at $84 million +/- $5 million.

For the first quarter of fiscal year 2011, Ariba now expects total revenues to be approximately $86 million +/- $1 million. The subscription software and maintenance revenue outlook remains unchanged at approximately $64.5 million. The services revenue outlook is now expected to be $21.5 million +/- $1 million. Accordingly, Non-GAAP EPS is now expected to be $0.16 to $0.18.

About Ariba, Inc.
Ariba, Inc. is the leading provider of collaborative business commerce solutions. Ariba combines industry-leading technology to optimize the complete commerce lifecycle with the world’s largest web-based community to discover, connect and collaborate with a global network of trading partners, delivering everything needed to control costs, minimize risk, improve profits and enhance cash flow and operations – all in a cloud-based environment. Whether you’re buying, selling or managing cash, you can do it more efficiently and effectively in the Ariba® Commerce Cloud. Over 325,000 companies, including more than 90 percent of the Fortune 100, use Ariba’s solutions to drive more efficient inter-enterprise commerce. Why not join them? For more information on Ariba commerce solutions and the results they deliver, visit www.ariba.com.


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