Markets were heading slightly higher on Friday morning after Scotland voted to turn down independence and remain part of the United Kingdom. The votes came in at 53.3% to in favor of rejecting independence from the UK. The 10-point gap was larger than many were expecting, most projections were in the 4-point range. Dennis de Jong, managing director at UFX.com, said, “It might not have been financial meltdown territory, but the markets almost certainly would have been in turmoil this morning if the Scots had voted yes.”
Shares of The Home Depot Inc. (HD) were trading slightly higher after the company announced that a recent data breach affected nearly 56 million debit and credit cards. The company reported the data breach that has gone on for months hit stores in both the U.S. and Canada. This breach surpasses the staggering 40 million affected by the Target breach back in the tail end of 2013. Home Depot said that the malware that had been tracking information between April and September of this year has been stopped. They also said that they have no evidence that PIN numbers were bothered or that people who shopped at Homedepot.com had been affected. John Kindervag, vice president and principal analyst at Forrester Research, said, “This is a massive breach, and a lot of people are affected. Home Depot is very lucky that Target happened because there is a numbness factor.”
Shares of Concur Technologies, Inc. (CNQR) were skyrocketing after news was released that they would be purchased by SAP, a German business software maker. SAP will be paying $8.3 billion, or $129 per share. This represents a 19.7% premium over yesterday’s closing price. The deal is expected to close in the last-quarter of this year or the first-quarter of next. Concur currently has nearly 25 million users in 150 countries and has had revenue increase 29%, $178 million, in the most recent fiscal year. SAP had sales of nearly $5.6 billion in revenue in their most recent fiscal year. This marks the largest deal on record for SAP and one of the top 10 largest software deals.
That’s all for today,
Warren Gates, Normandy Reasearch