Concur to Acquire GlobalExpense Acquisition of leading UK expense claim management provider expands Concur's local market leadership
LONDON, June 7, 2011 /PRNewswire/ -- Concur (Nasdaq: CNQR), a global leader in integrated travel and expense management, 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 pounds Sterling, plus a performance-based contingent earn-out of up to 2 million pounds Sterling. 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.
Concur® is a leading provider of integrated travel and expense management solutions for companies of all sizes. Concur's easy-to-use web-based and mobile solutions help companies and their employees control costs and save time. Learn more at www.concur.com/en-uk.
This press release contains forward-looking statements that are inherently uncertain. These forward-looking statements, such as the statements made by Messrs. Singh and Vine, are based on current expectations and involve many risks and uncertainties that could cause actual results to differ materially from current expectations. Factors that could cause or contribute to actual results differing from current expectations include, but are not limited to: potential difficulties or delays in connection with the GlobalExpense acquisition, including the anticipated timing of completion of the acquisition, the anticipated benefits of the acquisition, or the broader integration of the Concur and GlobalExpense businesses; potential delays in market adoption and penetration of our service offerings; potential difficulties associated with our deployment and support of our products and services; our ability to manage expected growth of our service offerings, including those integrating the GlobalExpense expense management service; retention and expansion of customers; continued use and adoption of on-demand services; the scalability of the hosting infrastructure for our integrated service offerings; changes in the level of business travel that may reduce the use of our products and services or inhibit new sales of our integrated products and services; potential difficulties associated with strategic relationships and with development of new products and services, including those incorporating GlobalExpense's offerings; uncertain market acceptance of our combined products and services or future products and services; and the overall level of customer demand for corporate expense management products and services.
Please refer to the company's public filings made with the SEC (http://www.sec.gov) for additional and more detailed information on risk factors that could cause actual results to differ materially from current expectations. Concur assumes no obligation to update the forward-looking information contained in this press release.