SAP Acquires Travel Management Software Leader Concur

Navigator Edition: September 2014
By: Alex Kays

In a move that is sure to make waves in the corporate travel industry, Concur Technologies, Inc., an expense and travel management software developer, has agreed to sell itself to SAP AG for $129 a share, or about $7.36 billion (enterprise value of $8.3 billion). At a premium of 19.7%, the transaction extends SAP’s streak of recent cloud-based software-as-a-service acquisitions and puts the world’s largest enterprise software company squarely at the forefront of consolidating a globalized business solutions network.

Concur, which helps organizations manage their T&E programs with detailed business travel and expense software, is not currently profitable on an annual basis, but is expected to report sales that have doubled to nearly $700 million since fiscal 2011. It also enjoys various travel and technology partnerships with companies such as American Express and, more recently, United, Airbnb, and Uber (see Figure 1). Concur currently has 23,000 clients and 25 million users in 150 countries, according to Business Insider, with clients ranging from mid-size to Fortune 500 companies, as well as universities and the government.

Figure 1: Recent Travel-Related Partnerships by Concur
Figure-1_-Recent-Travel-Related-Partnerships-by-ConcurSource: First Annapolis Consulting web research as of September 2014.

SAP seeks to immediately augment its SaaS and cloud computing offerings with the move. Estimates say the combined company will have 50 million users in the cloud following the deal. To further illustrate the opportunity for scale, the majority of SAP customers do not use Concur, and only around 30 percent of Concur customers use SAP. With other recent travel-related acquisitions including Ariba in 2012 and Fieldglass earlier this year, SAP is seeking to fill any perceived gaps among its expense management lines of business while cementing its intention to consolidate the cloud (see Figure 2).

Figure 2: Current Expense Management Capabilities

Figure-2_-Current-Expense-Management-CapabilitiesSource: First Annapolis Consulting web research and market observations.

News of the potential sale was first reported on September 2. Concur had also reportedly approached Oracle Corp. and Microsoft Corp. early on when exploring opportunities.

Source: Bloomberg, Forbes, Business Insider, Concur website.

For more information concerning the transaction and implications for business travel payments and services, please contact Alex Kays, Senior Analyst, specializing in Commercial Payments,

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