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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
Current Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
February 23, 2000
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Date of Report (Date of earliest event reported)
Concur Technologies, Inc.
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(Exact name of Registrant as specified in its charter)
<TABLE>
<S> <C> <C>
Delaware 000-25137 91-1608052
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(State of incorporation) (Commission file number) (I.R.S. Employer
Identification No.)
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6222 185th Avenue NE
Redmond, Washington 98052
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(Address of principal executive offices, including zip code)
(425) 702-8808
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(Registrant's telephone number, including area code)
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Item 5: Other Events
On February 23, 2000, Concur Technologies, Inc. announced that it had
entered into strategic alliance agreements with Nortel Networks Corporation and
SAFECO Corporation. In connection with those agreements, Nortel Networks and
SAFECO will invest a total of $35 million to purchase approximately 1.5 million
shares of Concur common stock, and that Nortel Networks and SAFECO will receive
warrants to purchase additional Concur common stock. The warrants will be
exercisable at the greater of $30.26 or 50 percent of the common stock price on
prescribed dates based on achieving certain annual targets for revenue derived
in connection with the arrangements with Nortel Networks and SAFECO over the
next five years. Nortel and SAFECO each agreed to resell certain of Concur's
products. Also, Nortel agreed to include Concur's eWorkplace business portal as
a hosted application providing access to Concur Business Advantage, and SAFECO
agreed to provide certain insurance and business equipment lending products
through Concur Advantage. The President of SAFECO Life & Investments agreed to
join Concur's Board of Directors.
Item 7: Financial Statements and Exhibits.
(c) Exhibits
Number Description
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99.01 Press release dated February 23, 2000
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Concur Technologies, Inc.
Date: February 23, 2000 By: /s/ Sterling R. Wilson
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Sterling R. Wilson
Executive Vice President of Operations
and Chief Financial Officer
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Exhibit Index
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Number Description
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99.01 Press release dated February 23, 2000
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Exhibit 99.01
Concur, Nortel Networks, SAFECO, and Microsoft Join Forces to Deliver World's
Largest eCommerce Trading Network for the Small and Mid-Size Business Market
Nortel Networks and SAFECO Agree to Take Equity Positions in Concur to Help
Pioneer eCommerce Initiative and Deliver Unprecedented Purchasing Power to Small
and Mid-Size Businesses
REDMOND, Wash. -- February 23, 2000 -- Concur Technologies (NASDAQ: CNQR),
Nortel Networks (NYSE/TSE: NT), and SAFECO (NASDAQ: SAFC) announced today a
strategic alliance to create the first global leveraged buying eCommerce trading
network for the small and mid-size business (SMB) market. The most complete
initiative of its kind, Concur Business Advantage marks the first time small and
mid-size businesses can take advantage of the leveraged buying power of global,
multi-billion dollar companies like Nortel Networks and SAFECO. Nortel Networks
and SAFECO have entered into an agreement to make a US$35 million equity
investment in Concur, and Microsoft Corp. (NASDAQ: MSFT) will provide marketing
and technical resource assistance.
Concur Business Advantage connects users over the Internet directly to market-
leading suppliers, representing a vast array of goods and services - ranging
from state-of-the-art computers to office supplies and temporary employment
services - with discounts of up to 65 percent. These savings are attainable
through significant pre-negotiated discounts on computer hardware, software,
office supplies, travel, and more. A comprehensive collection of world-class
suppliers has been carefully chosen to offer high quality corporate goods and
services through Concur Business Advantage. Compaq, Corporate Express,
GetThere.com, ImageX.com, Insight Enterprises, Manpower, and Software Spectrum
are among the premier suppliers participating in Concur Business Advantage.
Businesses typically spend between 25 and 55 percent of total company
expenditures on corporate goods and services. With the leveraged buying power of
Concur Business Advantage, these businesses can reduce their purchasing spend by
five to 15 percent, directly benefiting their bottom line. For example, a mid-
size business spending $10 million on corporate goods and services could
potentially save $1.5 million using Concur Business Advantage. With Concur
Business Advantage, buyers will have access to high quality goods and services
and will reap the benefits of volume discounts, time savings, and lower sourcing
costs for suppliers. Suppliers will benefit by expanding their reach to new
customers and will dramatically lower customer acquisition costs.
Under the terms of the agreement, Nortel Networks and SAFECO will invest a total
of US$35 million to purchase approximately 1.5 million shares of Concur common
stock. In addition, Nortel Networks and SAFECO will receive warrants to purchase
additional Concur common stock. The warrants will be exercisable at the greater
of $30.26 or 50 percent of the common stock price on prescribed dates based on
achieving certain annual targets for revenue derived in connection with the
arrangements with Nortel Networks and SAFECO over the next five years. The
investment is subject to certain terms and conditions, including obtaining
regulatory approval.
Building on its Managed Application Services Initiative, announced on Dec. 13,
1999, Nortel Networks will provide its expertise as a solutions integrator,
bringing together a complete managed service solution that allows its service
provider customers to offer a pre-integrated, certified, and cost-effective
eBusiness package to SMBs. The Nortel Networks managed service solution will
include the Concur eWorkplace(TM) business portal as a hosted application
providing access to Concur Business Advantage. Additionally, Nortel Networks
will leverage its channel of 15,000 value-added resellers (VARs) worldwide to
address a broad audience of SMBs.
"This is what our high-performance Internet is all about," said Clarence
Chandran, executive vice president, Nortel Networks and president of the
company's Service Provider and Carrier Group. "The magnitude of this alliance
further solidifies our commitment to bring a complete eBusiness solution to
market through our Managed Application Services Initiative, creating new
opportunities for small and mid-size businesses to profit from the Internet and
deliver true value to consumers around the world."
Concur will also extend its distribution through SAFECO's national distribution
network. SAFECO, the Fortune 500 insurance and financial products giant, has
more than 17,000 independent agents and investment advisors that may be brought
into the alliance, and will work with Concur to develop this network for Concur
Business Advantage. SAFECO will be the exclusive supplier of insurance and
business equipment lending offered through Concur Business Advantage, and also
will be a supplier of investment products. Additionally, Randy Talbot, president
of SAFECO Life & Investments, will join Concur's board of directors.
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"The decision to align with Concur and Nortel Networks to offer Concur Business
Advantage and develop our distribution network underscores our continued
expansion and leadership in eCommerce strategies," said Talbot. "We plan to
continue implementing Internet programs that help our agents build relationships
with small and mid-size businesses." With its acquisition of the American States
Business Insurance book of business in 1997, and with 500,000 small and mid-size
business customers in place, SAFECO is a leader in offering insurance and
diversified financial solutions to this market.
Microsoft joins Concur, Nortel Networks, and SAFECO to provide the technical
expertise necessary to create a seamless eCommerce solution. Microsoft will
devote marketing and research and development resources to optimize the
functionality of these solutions for Windows 2000 and today's high-performance
Internet. Concur Business Advantage is built on the Microsoft Windows 2000
platform, the foundation for the Business Internet. Coupled with Windows DNA, it
is the cornerstone of a powerful platform that is helping customers deliver
business-to-business eCommerce solutions more quickly and easily.
"Microsoft is committed to developing the technology and eBusiness solutions
that provide companies with easier and more effective ways to achieve business
success from today's Business Internet," said Peter Boit, vice president,
eBusiness Solutions, Microsoft. "Our relationship with Concur accelerates the
realization of that goal as together we will be able to reach hundreds of
thousands of corporate buyers and suppliers with an end-to-end eCommerce
solution."
"Concur's vision has always been to create the largest and most heavily
trafficked business-to-business electronic commerce network," said Steve Singh,
chairman and chief executive officer, Concur. "By entering into this strategic
alliance we will attract a multitude of potential new buyers to our commerce
network. Buyers are key to any successful commerce network, and by providing the
leveraged buying power of Concur Business Advantage, we continue to deliver on
our strategy to provide maximum value to buyers, who can now benefit from
negotiated rates from premier suppliers. Additionally, suppliers can efficiently
access an expanded base of SMBs within Concur Business Advantage."
"Concur Business Advantage will bring a new level of automation and service to
our purchasing process," said Sharlene Abrams, chief financial officer, Mercury
Interactive. "By using the best negotiated rates in Concur Business Advantage,
Mercury Interactive will be able to realize the benefits of volume discounts to
save money on the goods and services that we use everyday. We will also save
time with routine purchases such as computers, pagers, and office supplies
available directly from Web-enabled suppliers. For Mercury Interactive, the
Concur Business Advantage will give us an edge in procurement."
If you are interested in learning more about Concur Business Advantage, call
1-877-I-CONCUR or visit www.concur.com.
All company or product names are trademarks and/or registered trademarks of
their respective owners.
This press release contains forward-looking statements that involve risks and
uncertainties that could cause actual results to differ materially from current
expectations. Statements made in this release that relate to future plans,
events or performances or statements containing words such as "believes,"
"anticipates," "plans," or "expects" are forward-looking statements. These
statements are based on current expectations and involve risks and
uncertainties. Factors that could cause or contribute to actual results
differing from current expectations include, but are not limited to, uncertainty
of market acceptance of the Company's products; difficulties associated with
strategic relationships; risks associated with expansion into new markets; and
difficulties associated with new products.
Please refer to the Company's public filings made with the Securities and
Exchange Commission (http://www.sec.gov) for additional and more detailed
information on risk factors that could cause actual results to differ materially
from current expectations. Concur assumes no obligation to update the forward-
looking information contained in this press release.
