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Redmond's Concur making acquisition
Seattle Times technology reporter
Redmond-based Concur Technologies said Monday it is acquiring Outtask of Alexandria, Va., for up to $88 million in cash and stock.
The acquisition would allow Concur to help its business customers book travel arrangements, similar to how Expedia helps consumers, in addition to helping them manage corporate-expense accounting, Concur's core business.
Concur will pay between $67 million and $88 million for the privately held company, depending on Outtask's financial performance in the coming year. Payment will be 60 percent in stock and 40 percent in cash.
The deal is expected to close in the next few days.
Steve Singh, Concur's chief executive, said the company will keep most of Outtask's 65 employees, including CEO Tom DePasquale.
The acquisition would bring Concur's head count to about 500 employees.
Singh said it was a substantial acquisition that will help the company compete in the so-called "on-demand software" market, which involves using the Web to account for expenses quickly and help businesses find ways to save on expenses.
Unlike most on-demand software companies, such as Salesforce.com, Singh said Concur is focused on cutting costs, not increasing revenue.
Because Outtask is privately held, Singh would not disclose its financial results but said it would benefit from Concur's earnings in 2006. Together, the company will have about 3,000 customers, Singh said.
The deal is expected to be discussed during Concur's first-quarter earnings conference call Wednesday.
Concur's stock price rose 7 cents Monday to close at $14.94 a share.
Tricia Duryee: 206-464-3283 or firstname.lastname@example.org
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