SAP expects the pricey acquisition of Concur to increase its earnings in 2016, but that seems possible only with massive revenue growth or layoffs.

In its fiscal year ended this past September, Concur recorded non-GAAP pretax income of $56 million. [Using non-GAAP figures reduces the effect of non-recurring items and improves comparability of performance over time.] But SAP is borrowing about $8.7 billion to make the deal, meaning it will be paying something like $260 million a year in interest. So as compared with Concur's fiscal 2014, SAP needs to make up well more . . .

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Jay Campbell

Before starting The Company Dime with David Jonas in 2014, journalist Jay Campbell a decade earlier created travel business newsletter The Beat. In 2006, Jay co-founded Travel Procurement magazine and in 2010 helped integrate them with Business Travel News. He served as BTN's editorial director until 2013. Jay made his travel industry media debut in 1993 at the Air Travel Journal of Boston while earning his undergraduate degree in journalism at Boston University. He would be happy to connect on LinkedIn. He's here at CorporateTravel.social on Mastodon.