SAP buys Concur Technologies for $8.3 Billion

SAP buys Concur Technologies for $8.3 Billion

SAP buys Concur Technologies for $8.3 Billion

SAP had agreed to acquire an enterprise software company Concur Technologies for about $8.3 Billion.

Concur is one of the companies, which survive the dot-com boom.

SAP will pay 129 a share for Concour, it’s with 20 percent premium above Wednesday’s closing price.

This deal is one of the latest big deals by SAP from acquiring business-to-business marketplace Ariba for $4.3 Billion in 2012. Among others belongs acquiring Fieldglass, company founded for helping companies manage contract employees. SAP’s market capitalisation of nearly $100 billion.

“The acquisition of Concur is consistent with our relentless focus on the business network,” said Bill McDermott, CEO of SAP. “We are making a bold move to innovate the future of business within and between companies.”

Concur makes software that helps companies manage their view of their employees’ travel and expenses, a growing market as international business travel continues to grow.

“With Ariba, Fieldglass and Concur, SAP is the undisputed business network company,” said Mr. McDermott. “We are redefining how businesses conduct commerce across goods and services, contingent work forces, travel and entertainment.”

“We have always been focused on making solutions for real customer problems, and with SAP we have a great opportunity to advance that mission,” Steve Singh, the chief executive of Concur, said in a statement. “We are constantly seeking innovative ways to deliver the best customer experience and we’re excited about leveraging SAP technology,” he added, “as we scale globally.”

Concur shares grows up sharply since the financial crisis but have been basically flat since the start of the year even as the broader market has risen.

SAP was advised Deutsche Bank, while Concur advisor is boutique investment bank Qatalyst.

Mr. Stakebay says :

SAP tries to grow into the second largest cloud company with 50 million users in the cloud. This deal is win for the credit card company American Express, which owns 13.5 percent of Concur.

 

 

 

SAP

CONCUR TECHNOLOGIES

Revenue

$ 16.815 billion (2013)

$ 545.8 Million (2013)

Operating income

$ 4.479 billion (2013)

$ 6.396 Million (2013)

Profit

$ 3.325 billion (2013)

$ – 24.394 Million (2013)

Total assets

$ 27.094 billion (2013)

$ 1.725 Billion (2013)

Total Equity

$ 16.048 billion (2013)

$ 818.06 Million (2013)

Employees

66572 (2013)

3800 (2013)

 

CEO of SAP AG……………¨…….William R. McDermott…….(2014-present)…….$ 9 612 300 (2013)

Chairman and CEO of Concur…………Steve Singh………….(1996-present)……..$ 7 484 188 (2013)

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