SAP to buy Ariba for $4.5B, extending cloud push

May 23, 2012 at 2:30p.m.

NEW YORK (AP) — Business software maker SAP AG on Tuesday said it will buy Ariba Inc., which makes Web-based software that connects suppliers and buyers online, for about $4.51 billion.

The deal continues Germany-based SAP's rivalry with database maker Oracle Corp. Both companies are buying up smaller ones that, like Ariba, provide software that's hosted on remote servers, in the so-called "cloud." Cloud-based applications remove the need for businesses to install and run software in-house.

In April, Redwood Shores, Calif.-based Oracle closed on the $1.9 billion acquisition of Taleo Corp., which provides cloud-based software that helps companies recruit and manage employees.