Shares of Concur Technologies jumped nearly seven percent in heavy trading Monday after the Redmond maker of travel and entertainment expense management software announced a long-term deal with the U.S. General Services Administration. As part of the deal, Concur will manage online bookings, travel authorizations and vouchers across various U.S. government agencies.
The contract has a total value of $1.4 billion, with base and option terms of 15 years. It goes into effect next fall.
In a statement, Concur CEO Steve Singh said that they look ”forward to supporting the federal government for the next 15 years, bringing the perfect business trip to federal employees while driving down costs and saving the taxpayers money.”
Concur plans to update financial guidance in its third quarter earnings call based on the new contract.
Here’s the description of the new service, known as E-Gov Travel Service 2.0 or ETS2:
“(ETS2) is an End-to-End travel management service that automates and consolidates the Federal travel process in a secure Web-centric environment. ETS2 includes all aspects of official Federal business travel, including travel planning, authorization, reservations, ticketing, fulfillment, expense reimbursement, and travel management service, which serves as the foundation for achieving Federal goals for government-wide travel management.”