American Express buys 13 percent stake in Concur
NEW YORK (Reuters) - American Express Co (AXP.N) bought 6.4 million shares of management services provider Concur Technologies Inc (CNQR.O) for $251 million in cash, the companies said on Tuesday.
The purchase of the newly issued stock gives the credit card company 13 percent of the outstanding common equity voting interest in Concur, at a price of $39.27 per share.
Shares of Concur, which provides spend-management services for employees, closed up 33 cents at $36.05 in Monday Nasdaq trading.
American Express said the partnership allows it to offer corporate clients a system that eases the process of reporting expenses.
The company also received a warrant giving it the right to buy 1.28 million more Concur shares at $39.27 each over the next two years, the companies said in a joint statement.
About 50 percent of Concur's existing clients use the American Express Corporate Card. Under the deal, the company will exclusively promote American Express credit cards to its clients.
Shares of American Express closed down $1.25 at $35.37 on Monday on the New York Stock Exchange.
(Reporting by Jonathan Spicer; Editing by Lisa Von Ahn)
