Concur Technologies Inc is being bought by SAP in an effort to bolster its presence in the cloud-based applications portfolio. The purchase deal is estimated at $8.3 billion.
Concur’s revenue has topped $178.4 million for the quarter ended on June 30. Currently, the Bellevue-based company employs 4,200 employees, serves 23,000 customers and a user base consisting of 25 million people in 150 countries worldwide.
Concur’s board of directors have already approved the deal and it is expected to come through in the fourth quarter this year, according to a company source. The deal is next expected to go before the shareholders for approval.
Speaking about the acquisition, Bill McDermott, CEO of SAP said that the acquisition of Concur is consistent with the company’s relentless focus on the business network. He added that SAP is making a bold move to innovate the future of business within and between companies and that with Ariba, Fieldglass and Concur, SAP is the undisputed business network company.
McDermott said “We are redefining how businesses conduct commerce across goods and services, contingent workforces, travel and entertainment. With the SAP HANA platform, the possibilities to innovate new business models around Concur and the network are limitless.”
The transaction is expected to be funded by a credit facility agreement that will cover the purchase price, target debt refinancing and costs related to acquisition.