SAP acquires Concur Technologies for $8.3 billion, worrying investors
Tue 23 Sep 2014
The German enterprise software company SAP is set to increase its market share of the cloud with the $8.3bn acquisition of expenses management platform Concur Technologies – but the stock market feels that the Washington based software company may have been overvalued.
After the announcement NYSE share prices in SAP fell by over 4 per cent. Forbes notes that similar acquisitions such as the Salesforce purchase of ExactTarget and Oracle’s grab for Responsys were more moderately negotiated.
Founded in 1993, Concur Technologies is based in Bellevue, Washington, with subsidiary offices in the U.S., Europe, Australia and Asia. The company’s flagship product is Concur Travel & Expense, a cloud-based mobile and web software array which features corporate travel booking, business intelligence and expense report automation, among other services. The company’s mobile travel organiser TripIt boasts more than five million users.
The acquisition of Concur confirms SAP’s commitment to the cloud in the light of its 2012 $4.3bn purchase of Ariba’s procurement solutions, a ‘Spend Management’ business analysis solution which itself incorporates the Digital Marketplace Software TRADEX. With Concur Technologies added to its business facilitation portfolio, SAP is clearly building a case for domination of one sector of the cloud market.
Subject to the approval of Concur stockholders – perhaps not the transparent process now that it may have been before the stock market’s reaction to the purchase – the acquisition will go through either in the final quarter of 2014 or the first quarter of 2015.
SAP CEO Bill McDermott commented in the official press release that “The acquisition of Concur is consistent with our relentless focus on the business network…With the SAP HANA platform, the possibilities to innovate new business models around Concur and the network are limitless.”
SAP runs with an operating income of €4.46 billion, and employs over 66,000 people worldwide, and also operates SAP Research, a global technology research unit.