German business software maker SAP announced that it has agreed to acquire U.S.-based expense management software maker Concur Technologies. Concur Tech Inc , is the maker of expense and travel management tools, used by 23,000 businesses including TechCrunch and its parent company AOL.
The deal in all-share valued at $7.3 billion, for $129 per share. That gives Concur an enterprise value of $8.3 billion. SAP says it will fund the acquisition through a €7 billion credit facility.
SAP says the acquisition of Concur was consistent with their relentless focus on the business network. The company vows to make a bold move to innovate the future of business within and between companies. It expended its business network with the acquisition of Ariba in 2012, Fieldglass in this year and now the Concur Technology.
The acquisition is expected to close in the end of this year or the first quarter of 2015. Following the deal, SAP claimed that the combined company will have 50 million users. According to current statistics 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.
SAP has been slow in cloud computing that allow businesses to cut costs by ditching bulky servers for network-based systems, but the Concur deal accelerates its growth in the cloud. Analysts says the deal is expensive but it is expected that with the Concur which is the leader in its market, the potential synergies will prove to be a valuable addition.