Concur

SAP SE and Concur Technologies, Inc company. announced in September, 2014 conclusion of an agreement on which SAP America, Inc., affiliated company SAP, purchases Concur company.

Concur works at the multi-billion software market for management of traveling expenses (T&E) and totals 23,000 clients, 4,200 employees and 25 million active users in more than 150 countries. With Concur acquisition the annual volume of transactions of the world's largest business network SAP will exceed 600 billion US dollars. Increase in convenience of work of users in more than 25 different industries and considerable influence on the world market of software for management of traveling expenses with turnover in 1.2 trillion US dollars will become result of this transaction.

The Board of Directors of Concur unanimously approved the transaction which closing is expected in the fourth quarter 2014 or in the first quarter 2015, on condition of the consent of shareholders of Concur, obtaining permissions from the relevant regulating authorities and observance of other commonly accepted requirements to closing. The purchase price is 129 US dollars for an action that for 20% of high price of closing for September 17 and 21% above weighted average on the trading volume in a month. The cost of the company was about 8.3 billion US dollars. The transaction will be financed according to the credit agreement for total amount to 7 billion euros for the covering of purchase price, target refinancing of debt and costs connected with acquisition. External assessment of the company was executed by two credit rating agencies. Results of assessment will be announced "Acquisition of Concur corresponds to our course towards permanent development of business network.

Expansion of business network

• Acquisition of Concur will allow SAP to expand the business network and to take the place in the market of business trips with turnover of 1.2 trillion US dollars.
• Among developments of Concur there is an open platform with the innovation methods of creation of a uniform ecosystem of corporate travel (airlines, hotels and the companies on lease of cars).
• Having integrated this ecosystem with Ariba and Fieldglass networks, SAP will have a transactions opportunity in the field of with the total annual turnover over 10 trillion US dollars.
• Using SAP HANA® the Concur company is going to begin cooperation in real time which will change a value chain in the field of business trips, will allow to create new business models and to eliminate difficulties which millions of people face on business trips worldwide.
• SAP applications are anyway used in 2/3 processes of world commerce. Thanks to SAP HANA the SAP company takes a unique position which allows to implement the idea of "network economy in real time".

Achievement of interaction in the field of business

• After merger of companies the total number of their users in a cloud will be 50 million. It is the best result in the field of corporate cloud services and the second place on revenue among the cloud companies in general.
• The forecast of annual revenues of Concur makes more than 700 million US dollars. The global scope of SAP services allows to create the platform for reaching world level.
• Most of clients of SAP does not use Concur. The transaction gives to Concur the good chance for expansion within a franchize of SAP.

• For fall of 2014 only 30% of clients of Concur use the solutions Sap.Objedineniye will create an opportunity for acquaintance of users of Concur with innovations of SAP.

• Locating the widest amounts of data on traveling expenses and the potential of the SAP HANA platform, the Concur company will be able to provide to clients unique up-to-date information and analytics on business expenses worldwide.
• In the industry of travel and entertainments mobile devices dominate. Joint work with SAP, the leader in the field of innovations, will allow Concur to create network, context-dependent mobile applications.
• All processes of SAP on management of business trips and expenses will be migrated in integrated solutions of Concur.

Investments into business growth

• The Concur platform provides a wide scope of users: more than 23 thousand enterprises from small before large business in all 25 areas falling within an area of interest of SAP.
• In June, 2012 the Concur company received the 15-year delivery contract software for management of business trips and expenses in different federal agencies. The number of government customers of SAP is measured by tens of thousands, and the company intends to expand this direction worldwide, involving in cooperation of the government and agency of the different countries.
• In the sector of software for small and medium business the products Concur will add a new cloud solution of SAP Business One® Cloud based on SAP HANA, having made together with it an attractive set of offers for the enterprises of any size.