NEW YORK (TheStreet) -- Shares of SAP SE (SAP) are down 3.96% to $74.29 after the enterprise software company said it would acquire Concur Technologies (CNQR) for $8.3 billion, The Wall Street Journal reports.
The acquisition makes SAP the second-largest enterprise cloud service company behind Salesforce.com (CRM) . The deal is expected to close in the fourth quarter of 2014 or first quarter of 2015, subject to Concur stockholder approval.
"We have always been focused on making solutions for real customer problems and with SAP we have a great opportunity to advance that mission," said CEO of Concur Steve Singh.
Cloud services deliver software online to business customers on a subscription basis.
TheStreet Ratings team rates SAP SE as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate SAP SE (SAP) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."