Concur, a global leader in integrated travel and expense management, today announced it has agreed to acquire privately held Global Expense, 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 Global Expense’s core strengths in receipt validation, VAT and income tax compliance, and their extensive knowledge of UK tax legislation. We welcome the Global Expense team to Concur and look forward to working together to deliver even more value to employees, clients and partners.”
“For Global Expense, 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 Global Expense. “Concur and Global Expense 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 Global Expense 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.