Conqur's (NASDAQ:CNQR) Acquisition of TripIt a Good Move Says FBR

The acquisition of TripIt by Conqur (NASDAQ:CNQR) is considered a bullish one by FBR, saying it fits in well with the overall strategy of the company.

FBR noted, "This morning, Concur announced the acquisition of trip management provider TripIt. TripIt is a software-as-a-service provider of trip/itinerary management for both business and consumer travelers. We are bullish of this strategic acquisition as it provides (1) an additional application to the small and mid-sized enterprise markets, (2) added momentum to Concur’s mobile and platform strategy, and (3) a free option to enter the consumer travel market. The total deal valued could reach $120 million (depending on the value of stock consideration 30 months after closing) and is expected to close during F2Q10. Although the acquisition will be dilutive to Concur’s FY11 operating margins, we note that Concur has industry leading operating margins of approximately 23% and the purchase of TripIt is not unlike many of the dilutive software acquisitions that expand the acquiring company’s total addressable market and are typically well received by investors."

FBR Capital maintains an "Outperform" rating on Conqur, which closed Thursday at $54.74, gaining $0.16, or 0.29 percent.