Washington-based Concur Technologies Inc. (CNQR) recently completed the acquisition of GlobalExpense for £12 million (US$19.7 million) and an earn-out payment of £2 million on achievement of certain milestones. GlobalExpense is a London-based end-to-end expense management solutions provider.
The acquisition of GlobalExpense is expected to add $0.5 million to the fourth quarter 2011 revenues of Concur Technologies while as much as $5 million to the fiscal year figures. The company also projects the acquisition to increase non-GAAP pre-tax net income for fiscal 2012.
Concur Technologies is a provider of business services that automate the processes involved in the management of corporate expense. The company streamlines the reimbursement processes, reduces operating costs, improves internal controls, and also allows customers to apply greater insight into their spending patterns through analytics. This eliminates costly and inefficient expense processes in businesses of all sizes.
With the GlobalExpense acquisition, the company is expected to enhance its presence in the travel and expense management market of Europe. Moreover, GlobalExpense’s strengths in receipt validation, VAT and income tax compliance, and wide knowledge of UK tax legislation will also support Concur’s extended services offerings.
Earlier, in January 2011, Concur had acquired privately-held TripIt, a company making mobile trip management applications. In addition to helping travelers easily organize and share travel plans, Triplt’s open platform integrates applications from partners to provide value for the business traveler on the road.
Major competitors of Concur are Compuware Corporation (CPWR), Oracle Corp. (ORCL) and SAP AG (SAP).
We currently maintain our Neutral rating on Concur Technologies.
