Concur Technologies is a provider of integrated cloud-based travel and expense management solutions. The acquisition is expected to be completed by Q1FY15.
Forbes.com argues that investors did not greet the news favourably, due to the hefty valuation, with shares of SAP on the NYSE falling over 4%. With revenues of nearly USD 862 million expected for the fiscal year ending September 2015, Concur looks to be valued at approximately 9.6x forward FY sales.
Concur has over 20,000 clients around the globe and is accessed by over 25 million users. Through the acquisition, SAP intends to further strengthen its presence in the networked economy. Ariba, which was acquired by SAP for USD 4.3 billion in 2012, provides procurement solutions for more than 1.5 million companies transacting approximately USD 540 billion. By integrating Concur’s travel and expense management offerings with Ariba’s procurement solutions, SAP believes the addressable size of the business network could expand to more than USD 600 billion in transactions annually across 25 different industries.
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