Enterprise software company SAP just announced that it has agreed to acquire Concur Technologies, maker of expense and travel management tools that are used by 23,000 businesses (including TechCrunch and its parent company AOL).
The deal is for $129 per share, which is 20 percent higher than Concur’s closing price on Sept. 17 (yesterday). That gives Concur an enterprise value of $8.3 billion. SAP says it will fund the acquisition through a €7 billion credit facility.
“The acquisition of Concur is consistent with our relentless focus on the business network,” said SAP CEO Bill McDermott in the acquisition release. “We are making a bold move to innovate the future of business within and between companies. With Ariba [acquired in 2012], Fieldglass [acquired this year] and Concur, SAP is the undisputed business network company.”
Bloomberg reported earlier this month that Concur was discussing a possible acquisition with companies including, yep, SAP.
The acquisition is expected to close in the fourth quarter of this year or the first quarter of 2015. Following the deal, SAP says the combined company will have 50 million users “in the cloud.” To illustrate some of the opportunity on both sides, it notes that the majority of SAP customers do not use Concur, while only 30 percent of Concur customers use SAP.
Founded in 1993, Concur acquired travel startup TripIt back in 2011. The release also says that the company currently has a revenue run rate of $700 million.