SAP has agreed to purchase US software firm Concur – perhaps best known in the UK for business expenses management tool GlobalExpense – in a deal worth $7.3bn. (£4.5bn).
Concur has more than 23,000 customers, 4,200 employees and 25 million active users, all of whom will come under the management of SAP after the Concur board unanimously approved the deal.
The Germany-headquartered SAP has been slow on the uptake with regards to cloud computing, with the Concur deal viewed by many as an attempt to gain some ground in an area which is becoming increasingly important to the enterprise, sister title Computing reports.
“The acquisition of Concur is consistent with our relentless focus on the business network,” said Bill McDermott, CEO of SAP.
“We are making a bold move to innovate the future of business within and between companies,” he continued, arguing that: “With Ariba, Fieldglass and Concur, SAP is the undisputed business network company.”
“With the SAP HANA platform, the possibilities to innovate new business models around Concur and the network are limitless,” McDermott claimed, explaining that the deal was done because Concur and SAP share a “vision to help customers”
Concur CEO Steve Singh also welcomed the purchase of the firm by SAP.
“We have always been focused on making solutions for real customer problems, and with SAP we have a great opportunity to advance that mission,” he said, adding:
“We are constantly seeking innovative ways to deliver the best customer experience and we’re excited about leveraging SAP technology, including SAP HANA as we scale globally.”
Analysts at Bernstein were positive about the deal.
“It seems expensive. But we believe that Concur is the leader in its market and the potential synergies will be a valuable addition,” the said in a statement.
However, despite the positive reception surrounding the deal by the two firms and analysts, SAP shares declined by almost 3 per cent following news of the acquisition.