Amex Buys 13 Percent Stake In Concur

American Express today announced that Amex has taken a 13 percent equity stake in Redmond, Wash.-based booking and expense firm Concur Technologies through the purchase of 6.4 million shares of newly issued common stock worth $251 million in cash.

Amex has the right to purchase an additional 1.28 million shares of Concur common stock at $39.27 per share at any time during the next two years. Amex vice chairman and group CEO of business-to-business Edward Gilligan has been appointed to the Concur board of directors.

The two companies also announced an exclusive marketing agreement for the respective sales forces to market Amex corporate card products and Concur Expense to clients.

During the next 60 days to 90 days the sales teams will begin cross-marketing activity. Currently, more than 50 percent of Concur Expense clients use American Express, according to Concur president and COO Rajeev Singh.

Singh said the deal enables Concur to invest in distribution through building larger sales and account management teams, advancing research and development, paying down debt and repurchasing shares. In addition, the cash will be used to help expand in Europe and Asia/Pacific.

"The relationship with American Express allows us to grow more in the international markets quicker than we've been doing today," Singh told Business Travel News at the National Business Travel Association International Convention & Exposition in Los Angeles. "Today, we have north of 100 people in Europe and that's one of the fastest-growing segments of our business."