SAP SE (ADR) (NYSE:SAP) and Concur Technologies, Inc. (NASDAQ:CNQR) came to an agreement that SAP America, Inc. will acquire Concur Technologies for $8.3 billion. SAP has offered 20% premium over the closing per share price of Concur Technologies amounting to $129.00.
Concur Technologies, Inc. (NASDAQ:CNQR) is among the top companies of the world offering T&E (Travel and Expense) management software to businesses. After the acquisition of Concur Technologies, Inc. (NASDAQ:CNQR), SAP SE (ADR) (NYSE:SAP) will process transactions worth $600 billion annually and address $1.2 trillion in annual corporate travel expenses.
SAP SE (ADR) (NYSE:SAP) will fund the transaction with a €7 billion credit facility to cover all the associated expenses of the acquisition. The combined transactions processing power of Ariba, Fieldgalss, and Concur will help SAP touch global spending of nearly $10 trillion. The cumulative cloud user base of the combined company would touch 50 million. Its revenue would be second largest in the cloud service industry.
CEO of SAP SE (ADR) (NYSE:SAP), Bill McDermott, said,
“The acquisition of Concur is consistent with our relentless focus on the business network. We are making a bold move to innovate the future of business within and between companies. With Ariba, Fieldglass and Concur, SAP is the undisputed business network company. We are redefining how businesses conduct commerce across goods and services, contingent workforces, travel and entertainment. With the SAP HANA platform, the possibilities to innovate new business models around Concur and the network are limitless.”
Concur Technologies, Inc. (NASDAQ:CNQR) reported net GAAP revenue of $178.4 million for third quarter 2014 along with non-GAAP pre-tax income of $14.6 million. Further, the company announced joint partnership with International Business Machines Corp. (NYSE:IBM) to market its products to global enterprises.
This article has been written by Prakash Pandey.