Business software maker SAP has agreed pay $8.3 billion to acquire Concur, the company known for its business expense software that office workers frequently curse while trying to find their lost lunch and hotel receipts.
SAP (SAP) agreed to pay $129 a share for Concur (CNQR) — a 20% premium over Concur’s share value at Wednesday’s market close. The acquisition is SAP’s biggest under CEO Bill McDermott since he became its sole leader in May.
“The acquisition of Concur is consistent with our relentless focus on the business network,” McDermott said in a statement. “We are making a bold move to innovate the future of business within and between companies.”
Concur was reportedly seeking an acquisition despite its third quarter revenues climbing 28% to $177 million in the third quarter. SAP had been reported as one of the interested buyers.
In Concur, SAP gains a widely used corporate travel service and entry into the $1.2 trillion corporate travel market. Combined, the companies said its services will reach over 50 million users, making it the second-largest cloud company based on revenues.
Founded in 1993, Concur went public in 1998 and services 23,000-plus business clients. The 42-year-old SAP develops enterprise software for managing operations and customers relations. Its software is currently used by over 261,000 organizations.