Acquisition of leading UK expense claim management provider expands Concur’s local market leadership
LONDON, United Kingdom, June 7, – Concur (Nasdaq: CNQR), a leading provider of integrated travel and expense management services, today announced it has agreed to acquire privately held GlobalExpense, a London-based market leader in Web-based end-to-end expense management, for £12 million, plus a performance-based contingent earn-out of up to £2 million. Concur expects the acquisition to close in its fourth fiscal quarter. The acquisition is subject to customary closing conditions.
“Concur continues to execute against our growth strategies and extend our global leadership in travel and expense management by focusing on the local needs of every market we serve,” said Steve Singh, chairman and CEO of Concur. “This acquisition reflects our commitment to continue growing Concur’s investment and presence to serve the large untapped travel and expense management market in Europe. The acquisition expands and enhances Concur’s extended services offerings by leveraging GlobalExpense’s core strengths in receipt validation, VAT and income tax compliance, and their extensive knowledge of UK tax legislation. We welcome the GlobalExpense team to Concur and look forward to working together to deliver even more value to employees, clients and partners.”
“For GlobalExpense, this combination represents the next step in the company’s continued commitment to helping clients take control of their organisation’s employee expenses,” said David Vine, CEO of GlobalExpense. “Concur and GlobalExpense have had parallel strategies, each with a deep belief in providing greater insight and control into spending. We’re excited about the opportunities to provide greater value.”
Details Regarding the GlobalExpense Acquisition
The acquisition is expected to increase revenues by approximately $0.5 million for the fiscal quarter ending September 30, 2011 and by approximately $5 million for the fiscal year ending September 30, 2012. The acquisition is expected to be accretive to non-GAAP pre-tax net income for the fiscal year ending September 30, 2012.
Concur was advised by Taylor Wessing LLP on the transaction.