NEW YORK (CNNfn) - Ariba Inc., a provider of e-commerce services, announced a deal Thursday to buy closely held Tradex Technologies Inc. for $1.86 billion in stock.|
Mountain View, Calif.-based Ariba (ARBA) expects the buyout to boost its presence in the business-to- business e-commerce market, namely what it calls "net markets” -- or sites on the Internet that bring together buyers and suppliers.
Shares of Ariba fell 10-1/4 to 224 Wednesday in Nasdaq trading on reports the deal was imminent.
Ariba recently agreed to buy TradingDynamics Inc. for $400 million, bulking up its e-commerce product slate.
Atlanta-based Tradex, with customers such as American Express, Raytheon, and NTT, offers a digital platform that helps buyers and suppliers of goods and services make their exchanges online.
"We believe that, just as new dot.coms are emerging around every conceivable good and service in the consumer world, there will be net markets to serve every industry in the business world,” said Keith Krach, Ariba chairman and CEO, in a statement. "The Tradex team and solutions will accelerate Ariba's time to market in this fast-moving strategic high ground.”
Announcing their deal, the companies cited a Gartner Group study that estimated as many as 10,000 new "net markets” will be created by 2002.
The deal is expected to close in the second quarter of 2000.