We missed this earlier: Enterprise software maker SAP has signed an agreement to acquire the NASDAQ-listed travel and expense management company Concur Technologies in a deal valued at around $8.3 billion. It’s worth noting that Concur is a significant stakeholder in the online travel agent Cleartrip.
As per the deal, SAP is paying $129 per share, which was 20% higher than Concur’s closing price of $107.47 on September 17. Concur shares were trading at $126.78 at day’s close yesterday.
SAP informed that it will be funding this transaction through a credit facility agreement of up to €7 billion that will cover the purchase price, target debt refinancing and acquisition-related costs. The deal is expected to close in Q4 2014 or Q1 2015, subject to stockholder approval and clearances from relevant regulatory authorities.
Collaboration with SAP HANA
Following this acquisition, SAP will be migrating all its corporate travel and expense management to Concur’s integrated solutions. Concur will also collaborate with SAP to build network-based context-aware mobile apps. SAP claims both the companies combined will have 50 million users in the cloud and it will be the second largest cloud company in terms of revenue.
Concur will also apparently collaborate with SAP’s HANA platform to offer advanced analytics and insights to business-expense analysis besides creating new business models in the travel value chain. In addition, SAP mentions that Concur’s corporate travel platform will also complement its Ariba commerce network and Workforce management suite Fieldglass.
It’s worth noting that Concur was exploring a possible sale earlier this month and a source-based Bloomberg report had suggested that it had approached companies include SAP and Oracle for this purpose, however Oracle decided not to pursue this acquisition.
Founded in 1999, Concur claims to have more than 23,000 customers, 4,200 employees and 25 million active users in over 150 countries. The company had posted total revenue of $178.4 million and a net loss of $0.23 million for the quarter ended June 30, 2014.
Concur’s investment in Cleartrip
Concur had recently increased its stake in Cleartrip by buying out the stake of Sherpalo Ventures and Kleiner Perkins Caufield & Byers (KPCB). It had invested $5.4 million to increase its stake to 24.2%, as indicated by a Skift report.
Concur’s total investment in Cleartrip currently stands at $68.3 million. This includes a $40 million investment for undisclosed minority stake in April 2011.
Download: Structuring Of Investments In eCommerce Businesses In India – A MediaNama and Arkay & Arkay