Concur, which operates a spend management solution and the Concur Cliqbook Travel corporate self-booking tool, closed on a $287.5 million convertible senior note offering April 6 and intends to use net proceeds of $279 million "for general corporate purposes, including potential acquisitions and strategic transactions."
The Management Travel blog points to a research note byMcAdams Wright Ragen's Sid Parakh, who argues that companies like Farelogix and KDS could be on Concur's short list of acquisition targets.
Farelogix President and CEO Jim Davidson labels talk of a Concur acquisition of Farelogix "pure speculation."
And, a KDS spokesman says the company won't comment on market speculation.
Parakh envisions Concur making some small to medium-size acquisitions with the proceeds.
Zacks Investment Research has a neutral rating on Concur and states:
"We believe the market for corporate travel and expense management services is large and under-penetrated. The company intends to continue investing in the growth of its customer base and increasing its market penetration by significantly expanding its direct sales force, collaborating with and growing its strong partner network and expanding geographically.
"The company has already sold its products and services to the top 100 Fortune 500 companies. Its customers range from large global public companies with more than 200,000 employees to smaller, single-location private companies. Concur is adequately diversified with no single customer accounting for more than 10% of its total revenues in recent years."