2GL and rival Accounting Answers will merge their accountancy dealer businesses on Friday, adding 2GL's Pegasus and Tetra software to Accountancy Answers' Sage sales.
2GL, the #8 million Southampton reseller, will hand over its accountancy software arm to Accounting Answers, a specialist dealership also operating on the south coast. 2GL will take a minority stake in Accounting Answers and transfer two staff to its new affiliate under the terms of the deal.
The company is understood to be the UK's biggest Sage Sovereign dealer.
Simon Derrick, chairman of 2GL, said it will divest the accountancy business to focus resources on its core connectivity and networking activities in the corporate market.
'The accountancy market is not as profitable as it once was, and we have probably outgrown that market,' he said.
The merged business will be the strongest accountancy software house in the south, backed by the strongest reseller in the region, Derrick claimed.
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