By Sunil Kumar

Top European software company SAP AG plans to buy Ariba Inc in a deal valuing the business and commerce network company at $4.3 billion, its latest turf war against Oracle in the fast-growing internet-based computing market.

SAP is taking aim at Oracle, the world’s No 2 maker of business management software, as they vie with in one of the industry’s hottest areas of growth.

Shares in Ariba, that halted briefly, leapt 20% to SAP’s offer price of about $45 per share. According to a financial analyst, the $45-per-share offer for Ariba, a darling of the first dotcom boom that has since reinvented itself as a major networking and online commerce software developer, values Ariba at 6.9 times the expected 2013 revenue.

Cloud computing refers to providing software, storage, computing power and other services to customers from remote data centers over the Web.

SAP intends to integrate Ariba into Hana, a business intelligence tool to help companies analyse large quantities of data quickly. The European company also said it would consolidate its cloud-based supplier assets under Ariba, which would continue to operate as an independent business.

 SAP To Buy Ariba
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