But unlike his previous contract, this one does not provide an upfront stock-option grant as an additional signing bonus; the previous contract provided one valued at $25 million.
Concur is initially paying approximately $82 million in upfront cash, stock and unvested restricted stock units – additional consideration over time could bring the total value to $120 million.
It emerged the man who led the buyout, Dominic Chappell, is a former bankrupt, while credit insurers have refused to support BHS's suppliers, meaning the retailer had to pay upfront for stock.
Late Wednesday, Facebook announced that it will buy the popular instant-messaging app WhatsApp for a staggering $19 billion sum -- $4 billion in cash and approximately $12 billion in stocks upfront, plus another $3 billion in restricted stock over the next four years.
It raised eyebrows in August by acquiring Ion Torrent for $375 million in cash and stock upfront, plus as much as $350 million later if sales reach certain levels.
Without insurance, companies tend to demand cash payment for stock upfront, rather than one to three months after delivery, creating a financial squeeze.
The terms of the deal include $2 billion in cash and $3.8 billion in stock upfront, plus another $4 billion in milestone-based payouts to StemCentrx, and $3.8 in stock.
In August, Uber decided to settle with Jacobs for $4.5 million -- $2 million upfront, $1.5 million in stock, and an additional $1 million to consult with the company and cooperate in any investigations over the course of the next year.
One of the things that I felt was that rather than giving them shares once a year, as is common in some companies, I would rather give them four years' worth of stock upfront.... the key thing is if the stock goes up, which we always hope it does, then the golden handcuffs are dramatically increased, which is what I was hoping would happen.
The acquisition is worth up to $45 million, specifically $20 million in cash upfront, with cash and stock earn outs of $25 million.
