Concur Technologies Inc. (CNQR) and SAP AG (SAP) have jointly announced that the former's shareholders have approved the company's acquisition by SAP. The takeover is expected to be complete by Dec 4, 2014, subject to regulatory approvals.
SAP's decision to acquire Concur was initially announced on Sep 19, 2014, to form the second largest cloud company. The decision to acquire Concur is a strategic move by SAP as the combined companies will have access to over 50 million users in the cloud, which exceeds the user base of any enterprise cloud company.
Further, with the dominance of smartphone usage in travel and entertainment, the united Concur-SAP entity will focus on building network-based, context-aware mobile applications, while SAP will shift its corporate travel and expense management to Concur's integrated solutions.
Meanwhile, this acquisition is expected to expand SAP's business network to reach into the $1.2 trillion corporate travel gamut. Further, with the integration of the corporate travel ecosystem with the Ariba and Fieldglass networks, SAP's business network will have a prospect to power transactions that drive more than $10 trillion of global spend annually.
On completion, this deal is expected to shape one of the largest business networks. Moreover, the combined resources of the companies are expected to generate transaction volumes of more than $600 billion annually.
Concur currently has a Zacks Rank #3 (Hold). Some better-ranked companies in the audio/video products segment include Skullcandy, Inc. (SKUL) and Alps Electric Co. Ltd. (APELY). Both carry a Zacks Rank #1 (Strong Buy).
SAP AG ADR (SAP): Free Stock Analysis Report
CONCUR TECH INC (CNQR): Free Stock Analysis Report
ALPS ELECTRIC (APELY): Get Free Report
SKULLCANDY INC (SKUL): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.