Sage Group has announced an USD850 million acquisition of Intacct, a leading provider of cloud financial management solutions in North America. The company will become Sage Intacct after completion.
The acquisition which is expected to be paid in full and rolled over Sage options was announced on August 1, 2017.
According to a statement from Sage and received by BusinessDay, Intacct has its headquarters in San Jose, California and serves thousands of businesses in the North American scale-up and enterprise markets, both directly and through a network of partners.
The objective behind the purchase, Sage stated, was to enable it strengthen its business in cloud, particularly in the United States.
“As customer demand moves to the cloud and away from traditional monolithic Enterprise Resource Planning (ERP) suites, the acquisition strengthens Sage’s position as providing the first and last cloud financial management solution a customer will ever need from start-up to global enterprise, whilst integrating seamlessly with their other enterprise applications. Sage partners will now be able to grow their own businesses fully in the cloud with Sage. In the short term, it provides Sage further platform for growth, with medium term aspirations for geographical expansion,” Sage Group’s statement noted.
Intacct provides sophisticated and powerful cloud financial management solutions targeted at growing businesses looking for rich financial and operational insight, process automation, seamless integration with their existing software, advanced features and a modern user experience.
Stephen Kelly, chief executive officer of Sage who spoke on the acquisition noted that it was a significant step forward for the company in their quest to deliver their strategy.
“We are thrilled to welcome Intacct into the Sage family. The acquisition of Intacct supports our ambitions for accelerating growth by winning new customers at scale and builds on our other cloud-first acquisitions, strengthening the Sage Business Cloud. Intacct opens up huge opportunities in the North American market, representing over half of our total addressable market,” Kelly said.
It also stated that Intacct has a three-year revenue CAGR in excess of 33 percent, with current annualised recurring revenues of USD96 million and revenues in the twelve months of June 2017 of USD88 million, over 90 percent of which is subscription based. Intacct was recently named a ‘Visionary’ by Gartner in its inaugural Magic Quadrant for Cloud Financial Management Suites for Mid-size, Large and Global Enterprise.
“Sage’s management reconfirms current guidance as detailed in Sage’s third quarter trading update for the full year of at least 6 percent organic revenue growth including the contribution from North American Payments through to completion of the disposal and an underlying operating margin of at least 27 percent. For the avoidance of doubt the underlying margin guidance includes any investments in Sage Intacct, Sage People and Compass,” the statement stated.
Sage further noted that it expects the combined strength of Intacct, Sage People, and Compass to add approximately £20 million of revenue in the 2017 financial year.
Robert Reid, CEO of Intacct said “We are excited to become part of Sage because we are relentlessly focussesd on the same goal – to deliver the most innovative cloud solutions for our customers. Intacct is growing rapidly in our market and we are proud to be a recognised customer satisfaction leader across Midsize, Large and Global Enterprise businesses. By combining our strengths with those of Sage, we can jointly accelerate success for our customers.”
FRANK ELEANYA
