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Concur Technologies Acquires Captura

Concur Technologies Inc. (Nasdaq: CNQR), a corporate expense management ASP and indepedent software vendor (ISV), yesterday announced that it has agreed to acquire privately held Captura Inc., a Kirkland, Wash.-based company that also provides hosted corporate expense management applications.

According to Concur, the acquisition will strengthen its customer base, add incremental hosting expertise and introduce an additional source of predictable recurring revenue.

Under the terms of the agreement, all outstanding equity securities of Captura will be exchanged for approximately 5.2 million shares of Concur common stock, which will represent approximately 16.6 percent ownership of the combined company, plus approximately $2 million in cash. Based on the closing price of Concur stock on July 30, 2002, the deal is valued at between approximately $12.5 and 14.9 million, depending on such adjustments and escrow provisions.

Captura employees and headquarters will move to Concur's operations at its Redmond, Wash. headquarters. Concur will continue to support Captura products, but will over the next two years transition users to a new Concur product that incorporates the best features of both products, a Concur spokesperson told ASPnews.

Concur currently has 325 employees and Captura has 140, but due to redundancy in job functions, according to the spokesperson, about 130 employees will be eliminated.

Most of Captura customers subscribe to hosted services, Concur said. These subscriptions create a recurring revenue stream which improves predictability for shareholders.

"This acquisition furthers our position as the worldwide leader in expense management solutions for all market segments," said Steve Singh, Concur's chairman, president, and CEO. "The acquisition will yield many benefits for our customers, partners and shareholders; we will have a larger customer base, a wider range of hosted expense solutions, and a larger, more predictable recurring revenue stream." Following the acquisition, Concur says that seven of the top 10 companies on Fortune Magazine's Global 500 list will use of the the combined company's products.

Captura's 70 customers include Hewlett-Packard, General Motors, Ford Motor Company, Booz-Allen Hamilton, and Ericsson. Concur's customer base includes Citigroup, DuPont, SBC and Pfizer.

"Concur and Captura have long shared a vision of providing corporate expense management customers with their choice of delivery options -- whether licensed or hosted. By combining forces, Concur and Captura create an industry powerhouse with unsurpassed hosting expertise, deployment capabilities, and product leadership," Dan Vetras, CEO of Captura said.

Concur also yesterday reported that for its 2002 third quarter revenues were $10.8 million, up 13 percent from $9.5 million for the third quarter of fiscal 2001. The net loss for the quarter was $2.4 million, or $0.09 per share, $0.01 per share better than earnings per share guidance. This compares to a net loss of $7.8 million, or $0.30 per share, for the third quarter of fiscal 2001.

"This quarter marks the eighth consecutive quarter in which Concur has met or exceeded guidance provided by the company," said Singh. "We reached a major milestone this quarter, achieving positive gross margin in our ASP business. Concur benefits from both strong license revenue combined with a substantive recurring revenue stream from our ASP business which improves our leadership position."

Concur is listed by ASPnews as a Top 20 Service Provider.


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