Travel and expense management firm Concur signed a definitive agreement to acquire a compeititor, London-based GlobalExpense, for £12 million, or about $19.75 million.
The transaction is part of a Concur buying and investment binge, all part of its effort to assert market leadership in various global markets. For example, only two month ago, Concur took a $40 million stake in India's Cleartrip.
Steve Singh, chairman and CEO of Redmond, Wash.-headquartered Concur, says of the pending GlobalExpense acquisition:
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 offering by leveraging GlobalExpense's core strengths in receipt validation, VAT and income tax compliance, and thier extensive knowledge of UK tax legislation.
The acquisition is expected to close in Concur's fiscal fourth quarter, which ends Sept. 30, 2011, and could cost Concur an additional £2 million [$3.3 million] based on GlobalExpense's performance.
GlobalExpense combines Web-based expense-management software with a European audit center that vets customer receipts submitted in prepaid envelopes.
Concur says the acquisition should help it expand into European markets, increase its position among small- to medium size businesses and spread adoption of the Concur Connect Platform
Concur adds that the deal enables it to "gain strong talent on both the technology and business side," and hasn't detailed plans on how GlobalExpense's workforce will be impacted once the deal closes.
GlobalExpense currently provides services to some 200 companies dispersed among a range of industries.
GlobalExpense combines Web-based expense-management software with a European audit center that vets receipts that customers submit in prepaid envelopes.