SAP SE SAP in Your Value Your Change Short position agreed to buy Concur Technologies Inc. in a deal valued at $8.3 billion,

Software giant SAP SE will purchase Concur Technologies soon in a billion dollar deal. This acquisition will allow the German software company to expand its business into travel-related software which is designed specifically for hotels and tourism services.

This deal with Concur would be the most expensive in SAP’s history. This comment was according to Dealogic. This clearly ranks above SAP’s $7.1 billion acquisition of Sybase Inc. which happened in 2010. More so, this expensive acquisition also ranks among the 10 largest software deals along with Hewlett-Packard Co.’s $11.7 billion deal for Autonomy Corp. according to Dealogic.

Companies offering cloud computing, or providing service over the Internet, could also benefit from this acquisition. Cloud computing is seen as one of the most efficient ways to manage different kinds of computer processes rather than using software.

SAP Chief Executive Bill McDermott said it was “The largest acquisition in the history of the cloud industry.”

And of course who would be happier because of this acquisition than Concur shareholder. Shareholders would receive $129 per share, a 20% premium over Wednesday’s closing price of $107.80.

Meanwhile, analysts had mixed views on the acquisition and a lot of negative reactions have emerged due to the steep price SAP is paying Concur. Shares dropped more than 3% in midday trade in Frankfurt.

SAP has been very focused in cloud-based computing and this showed in its interest in human-resources application SuccessFactors and an e-commerce application called Ariba and Fieldglass. These allow companies to manage contingent workers and services in the most efficient manner.

Concur offers its products via the Internet. Products ranging from managing everything from companies’ supply chains down to every detail in their financial ledgers, these are integrated directly into those companies’ computer systems.

Mr. McDermott said the company will update its outlook after the completion of the takeover, which is expected either in the last quarter of this year or first quarter of next year.

Founded in 1993, Bellevue, Wash.-based Concur has recently posted a loss of $24.4 million on revenue of $546 million in the fiscal year ended Sept. 30, 2013. But Mr. McDermott has great expectations of the acquisition saying that the addition of Concur would mean its business network will now handle transactions totaling more than $600 billion annually. Mr. McDermott also mentioned in an exclusive interview that it doesn’t have a long list of companies it is planning to buy.

Executives say SAP said it would use a credit facility of up to €7 billion ($9 billion) to finance the purchase, plus debt refinancing and acquisition-related costs.

A.L. Mijares

About SAP SE

SAP SE (Systems Applications Products in Data Processing) is a European multinational software corporation that develops enterprise software to manage business operations. SAP is headquartered in Walldorf, Baden-Württemberg, Germany, with regional offices around the world. The company’s best-known software products are its enterprise resource planning application systems and management, its enterprise data warehouse product – SAP Business Warehouse, SAP Business Objects software, and Sybase mobile products and the in-memory computing appliance SAP HANA. SAP stock market evolution:

http://www.marketwatch.com/investing/stock/sap

About Bill McDermott

Bill McDermott is Chief Executive Officer and a member of the Executive Board of SAP. He leads the company’s 66,500 employees and more than two-million-person ecosystem. 2014 SAP under the leadership of Mr. McDermott, unveiled a strategy to help businesses of all sizes simplify their operations.

About Concur

Concur Technologies is an American provider of travel and expense management services. It is headquartered in Bellevue, Washington. Co-founded by Steve Singh, it has grown to more than 15,000 clients and 15 million travelers in over 90 countries. Concur is headquartered in Bellevue, Washington, with offices in Vienna, Virginia, Eden Prairie, Minnesota, Europe, Asia, and Australia. Concur stock market evolution:

http://www.marketwatch.com/investing/stock/cnqr

About Dealogic

Dealogic is an international financial software company. It has headquarters in the New York, NY. The company provides an efficient platform for investment banks to conduct deals in the areas of fixed income, equity capital markets, mergers and acquisitions, institutional sales and equity research, as well as Financial Industry Regulatory Authority (FINRA), SEC & FTSE regulatory and investment banking strategies.

About Hewlett-Packard Co

Hewlett-Packard Company or HP is an American multinational information technology corporation headquartered in Palo Alto, California, United States. It provides hardware, software and services to consumers, small- and medium-sized businesses (SMBs) and large enterprises, including customers in the government, health and education sectors.

Autonomy was acquired by Hewlett-Packard (HP) in October 2011. The deal valued Autonomy at $11.7 billion (£7.4 billion) with a premium of around 79% over market price. This price was criticized as very expensive and a “chaotic” attempt to rapidly reposition HP and increase its earnings through the exploit of the high-margin software services sector.