Support Skift’s Independent JournalismMake a Contribution Now
Concur Technologies Inc., a developer of software that helps businesses manage travel expenses, has explored a sale and approached companies including SAP SE to gauge their interest, people with knowledge of the matter said.
Concur, with a market value of over $5.7 billion, is working with an investment bank on the sale and also approached Oracle Corp., said the people, who asked not to be named because the information is private. Oracle decided not to pursue a transaction, one of the people said.
The growth of cloud computing, which involves distributing software through the Internet, is eating into traditional software sales, pushing companies into acquisitions to fend off new competitors.
>> Related: Read the Skift Interview with Concur CEO Steve Singh, Interview: Concur CEO on Making Sense of Business Travel Chaos
In June, Oracle said it would pay about $4.6 billion to acquire hotel and restaurant software maker Micros Systems Inc., while International Business Machines Corp. acquired SoftLayer Technologies Inc. for about $2 billion in 2013 before this year committing another $1.2 billion of spending to bolster its offerings.
Danielle Adams, a spokeswoman for Concur, didn’t immediately reply to messages seeking comment on a sale process. Representatives for Oracle and SAP declined to comment.
Concur manages business travel and expense software for companies, universities, and the government. The company, which isn’t currently profitable on an annual basis, is expected to report annual revenue of over $691 million in the year through September, nearly twice its sales in fiscal 2011, estimates compiled by Bloomberg show.
The Bellevue, Washington-based company’s shares gained about 3 percent in the year through last week.
SAP, the biggest maker of business-management software, has been acquiring makers of Web-delivered software to expand a growing part of its business. Chief Executive Officer Bill McDermott and his former co-CEO, Jim Hagemann Snabe, have spent more than $15 billion since 2010 buying suppliers of Web-delivered applications in areas including human resources and purchasing, as well as database maker Sybase.
–With assistance from Jack Clark and Ian King in San Francisco.
To contact the reporters on this story: Alex Sherman in New York at email@example.com; Aaron Ricadela in Frankfurt at firstname.lastname@example.org; Matthew Campbell in London at email@example.com To contact the editors responsible for this story: Mohammed Hadi at firstname.lastname@example.org; Kenneth Wong at email@example.com Elizabeth Wollman
Source: Google Finance