SAP agrees to buy expense software maker Concur for $7.3 billion
By Harro Ten Wolde
FRANKFURT (Reuters) - German business software maker SAP (SAPG.DE: Quote) said on Thursday it has agreed to acquire U.S.-based expense management software maker Concur Technologies Inc CNQR.O in an all-stock deal valued at $7.3 billion that expands its presence in internet-based software or so-called cloud computing.
SAP said in a statement it would offer $129 per share for Concur, a 20 percent premium over the Sept. 17 closing price.
But the offer is just under the $130.36 record high Concur shares set in January, after a dramatic two-year upward run.
Based on 57 million outstanding shares, the offer for Bellevue, Washington-based Concur is valued at $7.3 billion. Including debt, the offer represents an enterprise value of about $8.3 billion, SAP said.
With the acquisition of Concur, the biggest in SAP's history, SAP will increase its cloud users to 50 million from 38 million currently.
Cloud computing allows businesses to cut costs by ditching bulky servers for network-based systems using remote data centers run by technology companies.
Global business spending on cloud services is expected to jump 20 percent this year to $174 billion, research firm IHS estimates. By 2017, spending will be more than $235 billion, triple the 2011 level, they expect.
"The acquisition of Concur is consistent with our focus on the business network," said SAP Chief Executive Bill McDermott. Continued...