Menu
SAP buying Concur for $8.3 billion to boost cloud portfolio

SAP buying Concur for $8.3 billion to boost cloud portfolio

The travel and expense software vendor had reportedly been shopping for a potential buyer

SAP is buying business-travel and expense software vendor Concur for about US$8.3 billion, in a bid to continue growing out its portfolio of cloud-based applications.

The move comes a couple of weeks after Bloomberg reported that Concur had been shopping itself to potential buyers, including SAP, Oracle and Microsoft. Oracle decided not to make a deal and Microsoft wasn't interested at all, according to the Bloomberg report.

Concur, based in Bellevue, Washington, has 4,200 employees and more than 23,000 customers encompassing some 25 million users, the companies said, announcing the acquisition. The Concur board has unanimously approved the deal, which is expected to close in the fourth quarter, the companies said.

Concur sales are growing quickly, as revenue rose 28 percent to $178.4 million for the quarter ended June 30, but the company isn't currently profitable.

From a product standpoint, SAP and Concur already share many joint customers, and Concur has created a connector that ties its software into SAP back-end financial systems.

SAP said that its business network will transact more than $600 billion annually after the deal closes, across more than 25 different industries, with annual corporate travel spending of $1.2 trillion worldwide funneled through the company's software.

"The acquisition of Concur is consistent with our relentless focus on the business network," said SAP CEO Bill McDermott in a statement. "We are making a bold move to innovate the future of business within and between companies."

The companies are hosting a conference call at 6 p.m. Eastern time to further discuss the deal.

(More to follow.)

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris' email address is Chris_Kanaracus@idg.com


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags cloud computingMergers and acquisitionsinternetbusiness issuessoftwareSAPConcur

Featured

Slideshows

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Introducing the Reseller News Innovation Awards, launched to the channel at the 2018 Judges’ Lunch in Auckland. With more than 70 judges now part of the voting panel, the new-look awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors.

Reseller News launches new-look Awards at 2018 Judges’ Lunch
Kiwi channel debates GDPR as Reseller News Exchange hits Wellington

Kiwi channel debates GDPR as Reseller News Exchange hits Wellington

This exclusive Reseller News Exchange, in association with Arrow ECS ANZ, ForeScout and StorageCraft, went on the road to debate the early implications of GDPR in New Zealand, extracting opportunities while evaluating challenges for the channel in the year ahead.

Kiwi channel debates GDPR as Reseller News Exchange hits Wellington
Show Comments