Bloomberg News

Concur Said to Explore Sale to Software Makers Including SAP

September 03, 2014

SAP AG CEO Bill McDermott

Bill McDermott, SAP AG Chief Executive Officer. SAP, the biggest maker of business-management software, has been acquiring makers of Web-delivered software to expand a growing part of its business. Photographer: Martin Leissl/Bloomberg

Concur Technologies Inc. (CNQR:US), a developer of software that helps businesses manage travel expenses, has explored a sale and approached companies including SAP SE to gauge their interest, people with knowledge of the matter said.

Concur is working with an investment bank on the sale and also approached Oracle Corp. (ORCL:US), said the people, who asked not to be named because the information is private. Oracle decided not to pursue a transaction, one of the people said. Concur rose 6.3 percent to $107.26 at 10:24 a.m. in New York today, giving the company a market value of about $6.1 billion (CNQR:US).

The growth of cloud computing, which involves distributing software through the Internet, is eating into traditional software sales, pushing companies into acquisitions to fend off new competitors. In June, Oracle said it would pay about $4.6 billion to acquire hotel and restaurant software maker Micros Systems Inc., while International Business Machines Corp. acquired SoftLayer Technologies Inc. for about $2 billion in 2013 before this year committing another $1.2 billion of spending to bolster its offerings.

Danielle Adams, a spokeswoman for Concur, didn’t reply to messages seeking comment on a sale process. Representatives for Oracle and SAP declined to comment.

T&E Software

Shares of SAP declined 1.3 percent to 59.03 euros.

Concur manages business travel and expense software for companies, universities, and the government. The company, which isn’t currently profitable on an annual basis, is expected to report annual revenue of more than $691 million (CNQR:US) in the year through September, nearly twice its sales in fiscal 2011, estimates compiled by Bloomberg show.

The Bellevue, Washington-based company’s shares gained about 3 percent in the year through last week.

Concur also approached Microsoft Corp. (MSFT:US) about its possible interest, according to another person familiar with the situation. Microsoft isn’t interested and isn’t in talks with the company, the person said. Frank Shaw, a spokesman for Microsoft, declined to comment.

SAP, the biggest maker of business-management software, has been acquiring makers of Web-delivered software to expand a growing part of its business. Chief Executive Officer Bill McDermott and his former co-CEO, Jim Hagemann Snabe, spent more than $15 billion since 2010 buying suppliers of Web-delivered applications in areas including human resources and purchasing, as well as database maker Sybase.

To contact the reporters on this story: Alex Sherman in New York at asherman6@bloomberg.net; Aaron Ricadela in Frankfurt at aricadela@bloomberg.net; Matthew Campbell in London at mcampbell39@bloomberg.net

To contact the editors responsible for this story: Mohammed Hadi at mhadi1@bloomberg.net; Kenneth Wong at kwong11@bloomberg.net James Callan


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Companies Mentioned

  • CNQR
    (Concur Technologies Inc)
    • $126.82 USD
    • 19.02
    • 15.0%
  • ORCL
    (Oracle Corp)
    • $39.8 USD
    • -1.75
    • -4.4%
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