SAP to buy business expense software maker Concur
German business software giant SAP has agreed to buy Concur Technologies, which makes a corporate travel and expense management system, for $8.3 billion (6.5 billion euros), both companies said.
In SAP's largest ever deal, its subsidiary SAP America has agreed to acquire Concur in the fourth quarter of this year or the first quarter of 2015, subject to Concur stockholder approval and clearances by regulatory authorities, they said.
The Concur board of directors has unanimously approved the transaction.
"The acquisition of Concur is consistent with our relentless focus on the business network," said SAP chief executive Bill McDermott. "We are making a bold move to innovate the future of business within and between companies."
Concur's open platform connects the "corporate travel ecosystem", such as airlines, hotels and car rental companies, in the computing cloud.
The company based in the city of Bellevue in the US state of Washington has 4,200 employees, more than 23,000 customers and 25 million active users in over 150 countries.
With Concur, SAP's business network will handle transactions worth more than $600 billion a year and deliver commerce across more than 25 different industries, the companies said.
The move would help SAP redefine "how businesses conduct commerce across goods and services, contingent workforces, travel and entertainment", the German company said.
DZ Bank analyst Harald Schnitzer said "the planned transaction fits into SAP's cloud strategy since the cloud business is expected to grow much faster than traditional software licences revenues by 2020".
He said the "purchase price is ambitious but it is widely in line with multiples paid for previous cloud investments".
© 2014 AFP