SAP Just Spent $8.3 Billion To Become 'The Second-Largest Cloud Company' (SAP)

German software giant SAP just acquired Concur Technologies, a travel and expense software provider, at a deal worth roughly $8.3 billion. SAP agreed to pay $129 per share, a 20% premium over Wednesday’s closing price.

Concur’s software helps the enterprise simplify its travel expense management. It has over 23,000 clients and 25 million active users across 150 countries, and is generally considered one of the largest companies in a sector called travel and expense (T&E) management software. In 2013, Concur had $545.8 million in sales for a net loss of $24.3 million.

“The combination of Concur and SAP will bring together the leading cloud-based Travel and Expense platform with the market-leading enterprise application software company, and we expect this union to drive significant value for our customers,” Concur CEO and Chairman Steve Singh wrote on the company blog.

Following today’s deal, SAP said it will have more than 50 million users in the cloud, which is more than any other enterprise cloud company. By measure of revenue, it will become the second-largest cloud company, it said.

Concur shares went up nearly 20% after hours, trading at $128.90 per share. SAP shares went up by $0.83, or just a little over 1%.

Here’s the full press release:

WALLDORF, Germany and BELLEVUE, Washington – SAP SE (NYSE: SAP) and Concur Technologies, Inc. (NSDQ: CNQR) today announced that SAP’s subsidiary, SAP America, Inc., has entered into an agreement to acquire Concur. With more than 23,000 customers, 4,200 employees and 25 million active users in over 150 countries, Concur is the leader in the multi-billion market for travel and expense (T&E) management software. With Concur, SAP’s business network – the world’s largest – will transact more than US$600 billion annually, deliver frictionless commerce across more than 25 different industries and address annual corporate travel spend of US$1.2 trillion worldwide.

The Concur board of directors has unanimously approved the transaction, which is expected to close in the fourth quarter 2014 or the first quarter 2015, subject to Concur stockholder approval, clearances by the relevant regulatory authorities and other customary closing conditions. The per-share purchase price of US$129 represents a 20% premium over the September 17 closing price, a 21% premium over the one month volume weighted average price per share and an enterprise value of approximately US$8.3 billion. The transaction will be funded from a credit facility agreement of up to — For more information read the original article here.    

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