New Oracle Co-CEO Rips Rival SAP
In an interview with Bloomberg's Cory Johnson, she slammed SAP's $8.3 billion purchase of a company called Concur, which offers cloud travel and expense (T&E) management software. SAP announced the deal the same day as Oracle announced her promotion to co-CEO, and its first-quarter results, which were generally good, but didn't meet Wall Street's expectations.
SAP paid $129/share, a 20% premium over Concur's previous closing price and about 11 times Concur's 12-month revenue, a high multiple, even for a cloud company acquisition.
SAP says that with this purchase, it has now become the "second-largest" cloud company by revenue.
Catz isn't impressed. She told Bloomberg, "Concur is only a tiny module." SAP "spent all their money on it. I literally went down to my car and thought, oh my God, SAP bought Concur -- maybe tomorrow they'll buy Dairy Queen. It was the best thing that happened to me on the day I was named CEO of Oracle."
SAP declined comment to Bloomberg. We reached out and asked SAP for comment, too.