German enterprise software major SAP has entered into an agreement to acquire Nasdaq-listed Concur Technologies Inc., a travel and expense management solutions firm co-founded by its Indian origin chief Steve Singh, for approximately $8.3 billion. Concur is a key investor in Indian online travel agencyCleartrip.com.
The transaction, expected to close by the first quarter of 2015, will be funded from a credit facility agreement of up to €7 billion (over $9 billion) to cover the purchase price, target debt refinancing and acquisition-related costs, SAP said.
With Concur, SAP’s business network will transact more than $600 billion annually and deliver commerce across more than 25 different industries.
“The acquisition 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. With Ariba, Fieldglass and Concur, SAP is the undisputed business network company. 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,” he added.