Software firm Concur Technologies acquires competitor

Redmond-based Concur Technologies, which provides corporate expense management software, said Monday that it has acquired one of its competitors.

Six months of discussion led to Concur's $160 million cash purchase of privately held H-G Holdings and its subsidiaries, including Gelco Information Network.

"This is an acquisition that allows us to grow the business substantively," said Steve Singh, chairman and chief executive of Concur.

Gelco, based in Eden Prairie, Minn., will add about 1,200 clients to Concur's existing customer base of 5,000.

With the acquisition, Concur plans to invest more in distribution and infrastructure, as well as expand its product offerings, Singh said.

Concur also will benefit from Gelco's technology in two areas, automatic audits of expenses and payment processing, said Brad Whitt, an analyst with New York-based RBC Capital Markets.

"Combining the two companies will strengthen Concur's position," said Whitt. "This will give them more scale so they can remain competitive on pricing."

The buyout will have "modest to no impact" on employees of both companies, Singh said.

Concur helps businesses control costs and manage employee spending through its on-demand software.

Its main competitors in this arena include Infor and Ariba, as well as the giants in the field, SAP and Oracle.

The deal, which Concur will pay for with bank financing, is expected to take about 90 days to close.

Concur has made two other acquisitions in the past five years, including Outtask in early 2006 and Captura in mid-2002.

The company plans to release its third-quarter financial results Wednesday.

In its second-quarter report, Concur said it expected revenues of $31.6 million for the third quarter and $123 million to $125 million for fiscal 2007.

The company had $97.1 million in revenue for fiscal 2006.

Concur has about 300 employees in the Seattle area.

Bibeka Shrestha: 206-515-5632 or bshrestha@seattletimes.com