WALLDORF (dpa-AFX) - German business software giant SAP AG (SA), Thursday said it has agreed to buy Concur Technologies Inc. (CNQR) for an enterprise value of $8.3 billion. Concur Technologies is a travel and expense management software solutions provider.
Shares of Concur Technologies surged 19 percent in the extended trading hours, following the news.
SAP has agreed to pay Concur shareholders $129 for every share held, which represents a premium of 20 percent over yesterday's closing price. The German software maker plans to fund the acquisition using a credit facility of up to 7 billion euros.
The Concur board has unanimously approved the deal and expect to close it in fourth quarter or by first quarter of 2015, subject to customary approvals.
Concur is a key player in the multi-billion market for travel and expense management software. The company has more than 23,000 customers, 4,200 employees and 25 million active users in over 150 countries.
'The acquisition of Concur 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.'
SAP said that together the two companies will have more than 50 million users in the cloud - more than any enterprise cloud company - and will be the second largest cloud company by measure of revenue.
CNQR closed Thursday's trading at $107.80, up $0.33 or 0.31%, on the Nasdaq. The stock further gained $21.22 or 19.68% in the after-hours trade.
SAP closed Thursday's trading at $77.35, up $0.83 or 1.08%, on the NYSE.
Copyright RTT News/dpa-AFX