Concur Technologies Shares Popped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of cloud software maker Concur Technologies (NAS: CNQR) are heading into the sky today, up by as much as 17%, as the sector is seeing some M&A-related upside.
So what: German software company SAP (NYS: SAP) announced that it intends to acquireSuccessFactors (NYS: SFSF) for $3.4 billion. The acquisition is sparking a healthy rally throughout much of the cloud-computing sector, carrying Concur in the updraft.
Now what: SuccessFactors' closest competitor, Taleo (NAS: TLEO) , has also skyrocketed to new highs on the announcement. BMO Capital noted that the sector "is being consolidated faster than we were expecting," which can be effectively translated into "there may be more premium-priced acquisitions coming soon." Investors are optimistic that smaller players like Concur may get snapped up by larger companies like Oracle (NAS: ORCL) and SAP as they beef up their cloud offerings.
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At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. The Motley Fool owns shares of Oracle. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.