Quadrem, a global mine supply network has been purchased by Ariba Inc for $150 million. The company which was launched a decade ago by 15 metal and mining companies has been sold to supply chain and collaborative business commerce vendor Ariba.
Quadrem was a privately held global leader in supply chain management focusing on minerals and mining industry with 18 resources companies as its shareholders. Ariba will enhance its reach in emerging markets as a direct consequence of this acquisition.
Ariba had weak penetration into Latin America, EMEA and Asia Pacific in terms of volume. This will be remedied with the reach of Quadrem being added to its portfolio. Quadrem was amongst the first B2B marketplaces in the early 2000s.
The focus of Quadrem has been in sourcing, spend analysis, purchase to pay, supplier enablement, network, invoice, and connectivity areas for companies which were specifically engaged in minerals and mining businesses.
Ariba will pay a total of $150 million, comprised of an upfront payment of $75 million in cash and $50 million in stock, and a holdback payment of $25 million, payable 36 months after the close in either cash or stock as per the deal.