for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

Accenture to buy Ariba's BPO assets for $51 million

(Reuters) - Technology outsourcing and consulting firm Accenture Plc ACN.N said it would buy Ariba Inc's ARBA.O consulting services and BPO assets for $51 million in cash.

Ariba, which provides procurement software and consulting services, said the businesses will account for about $40 million of 2010 revenue and 7 cents a share in adjusted earnings, it said in a regulatory filing.

Accenture, which will absorb 160 employees from Ariba, will enter into a four-year non-competition agreement with the latter.

The deal is expected to close in Ariba’s first quarter of fiscal 2011, ending December 31, 2010, the companies said in a statement.

Shares of Dublin, Ireland-based Accenture were trading almost flat at $45.19 Wednesday morning on the New York Stock Exchange.

Ariba’s stock was down as much as 4 percent at $18.92 on Nasdaq.

At their Tuesday close of $19.65, shares of the Sunnyvale, California-based Ariba, which have climbed consistently over the last couple of years, were at the highest in more than six years.

Reporting by Swati Chitnis in Bangalore; Editing by Vyas Mohan

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up