SAP To Buy Concur For $129 A Share, Enterprise Value Of $8.3 Bln

(RTTNews) - German business software maker SAP SE (SAP) Thursday agreed to buy Concur Technologies Inc (CNQR), a provider of travel and expense management solutions, for $129 per share, denoting an enterprise value of $8.3 billion. The company said the deal would be effected via its unit SAP America Inc.

The per-share purchase price of $129 represents a 20% premium over the September 17 closing price of Concur.

Concur is a key player in the multi-billion market for travel and expense management software. The company has more than 23,000 customers, 4,200 employees and 25 million active users in over 150 countries.

With Concur, SAP's business network - the world's largest - will transact more than $600 billion annually, deliver frictionless commerce across more than 25 different industries and address annual corporate travel spend of $1.2 trillion worldwide.

The Concur board has unanimously approved the deal, which is expected to close in the fourth quarter 2014 or the first quarter 2015, subject to customary closing conditions.

SAP said the deal will be funded from a credit facility agreement of up to 7 billion euros to cover the purchase price, target debt refinancing and acquisition-related costs.

"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."

According to SAP, together the two companies will have more than 50 million users in the cloud — more than any enterprise cloud company — and will be the second largest cloud company by measure of revenue. Concur has a revenue run rate of more than $700 million.

SAP said that a majority of its customers do not run Concur, presenting a opportunity to scale as part of the SAP franchise. Also only 30% of Concur customers currently run SAP, presenting a opportunity to introduce SAP innovations to the Concur install base.

SAP will migrate all its corporate travel and expense management to Concur's integrated solutions.