Renowned Software developer, Concur Technologies, Inc. (NASDAQ:CNQR) is said to be considering a sale of the company to be conducted by an investment bank. The company is said to have gone as far as approaching SAP SE (ADR) (NYSE:SAP) and Oracle Corp. (ORCL), according to a post by Bloomerg.
Re/code revealed on an ensuing post that Oracle Corp. (NYSE:ORCL) didn’t follow up on a possible purchase.
An article by Reuters said that Concur Technologies, Inc. (NASDAQ:CNQR) had its shares leap to $114 in post marketing trade. This was after the company’s stock closed on Tuesday at $100.95 on NASDAQ, putting the company’s market value at $5.7 billion in total. This is according to information posted on Reuters website.
Many companies developing traditional software have been facing uphill task to cope with the emergence and speedy expansion of the demand for cloud computing. This trend has pushed bigger companies to purchase smaller ones in a bid to reduce competition. Oracle Corp. (NYSE:ORCL) is said to have reported that it would pay $4.6 billion to acquire Micro Systems, which is a traditional software development company.
Further information by Bloomberg indicates that Concur Technologies, Inc. (NASDAQ:CNQR) is expected to earn a revue totaling to $691 million in the year. This, according to Bloomberg will be almost double of what was registered during the financial year 2011, making the stock a possible target by competing companies.
Another source revealed that Microsoft Corporation (NASDAQ:MSFT) was also approached by Concur Technologies. However, the source revealed that Microsoft Corporation (NASDAQ:MSFT) has declined to follow up on the possible sale. This information could however not be verified as Microsoft Spokesman, Frank Shaw, refused to comment or issue a statement on the matter.
SAP SE (ADR) (NYSE:SAP) has neither confirmed nor denied the reports.
SAP SE (ADR) (NYSE:SAP) is the biggest developer of business management software and has been in a high gear of acquisition to expand its growing market share. Since 2010, reports reveal that the company has spent above $15 billion purchasing companies that produce web-delivered application programs in some of its interest areas such as HR and purchases.
More information is expected to come out as Concur Technologies, Inc. (NASDAQ:CNQR) continues with the process.
This article has been written by Victor Ochieng.