REDMOND, Wash. – Concur Technologies Inc., a provider of intranet-based business applications that extend automation to employees and partners, held an initial public offering December 16. The company offered 3.1 million shares at $12.50 apiece, its proposed offering price.
The offering, which left 16.5 million shares outstanding, was underwritten by BancBoston Robertson Stephens, Hambrecht & Quist and Piper Jaffray Inc.
Venture investors include Brentwood Associates VI, Institutional Venture Partners VII, Mayfield VIII, US Venture Partners IV, RRE Investors, Imperial Bank Emerging Growth Industries Group and American Express Travel Related Services. Several company executives sold 200,000 shares, the only stockholders to do so.
Concur’s Xpense Management Solution (XMS) and CompanyStore products automate the preparation, approval, processing and data analysis of travel and entertainment expense reports and front office procurement requisitions. Since XMS introduction in 1996, Concur has licensed its products to more than 150 enterprise customers with more than 800,00 end-users. The company added CompanyStore to its suite of products through the June 1998 acquisition of 7Software Inc. Concur also has entered into an agreement with Automatic Data Processing Inc., the automated payroll company, to jointly market XMS in exchange for Concur’s payment of a referral fee. Current customers include AT&T Corp., Eastman Kodak Corp., Pfizer Inc. and Texaco Inc.
The estimated $32.8 million in proceeds generated by the offering will be used for increased domestic and international sales and marketing, research and development and working capital.
Since its inception in 1994, the company has never been profitable, losing $18.1 million and $5.5 million for the fiscal years ending September 30, 1998 and 1997, respectively.
Jeffrey Brody, a general partner of Brentwood Associates, joined the company’s board of directors in October 1994, followed by Institutional Venture Partners G.P. Norman Fogelsong in July 1996, Mayfield G.P. Michael Levinthal in April 1998 and RRE Investors Chairman and Chief Executive James Robinson in July 1998. Russel Fradin, president of ADP’s Employer Services North America division, and Edward Gilligan, president of American Express’s Travel Related Services division, are expected to join the company’s board of directors following the offering.
Concur Technologies – Selected Financials
(in thousands, except per share data)
Year Ended September 30,
1994 1995 1996 1997 1998
Net revenue – 2,128 1,959 8,270 17,159
Net loss -602 -2,890 4,953 -5,524 -18,074
Net loss per share* -1.58