Accountancy software developer Sage has beefed up its presence in the US with the purchase of California-based State of the Art (Sota) for $263 million (#159 million).
Sage already owns US accounting software companies Dac Easy, Timeslips and Telemagic as part of the Sage US Group. It supplies accounting software to small and medium-sized businesses in France, Germany and the UK.
Paul Walker, CEO of Sage, claimed the acquisition was a step towards making Sage a global franchise. 'Sota has an excellent product range, strong value-added reseller network and a substantial customer base. In the US, our combined product lines have almost no overlap.'
Sage will pay 33 per cent over the company's market capitalisation for Sota and will gain 90,000 US customers. The company will continue to be run by president and CEO David Hanna, and will remain at its headquarters in Irvine, California.
Last year, Sota achieved a pre-tax profit of $9.7 million and sales of $64 million, and is one of the two leading players in the US PC accountancy software market.
Walker said the US company has been a potential acquisition for some time. He added that the objective was to consolidate the existing customer base in the US. 'The products and services we offer our customers make up to 60 per cent of our revenue in the UK. For Sota that figure is more like 20 per cent. This is something we want to focus on.'
He said the US company would take the Sage name, but there would be no redundancies.
July - Multisoft (UK)
August - Timeslips (US)
November - Saari (France)
February - KHK (Germany)
October - Prosoft (US).
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