Financial software giant Sage has sold off its dedicated construction software arm in a management buyout deal with specially set up construction software firm Eque2.
The MBO, for an undisclosed sum, was led by Clearwater Corporate Finance, with investment support from UK-based private equity firm ISIS Equity Partners.
Based at Sage’s Manchester, Farnham and Glasgow offices, Sage Construction has been developing, implementing and supporting construction and contracting software for medium to large-sized companies with its product range which includes: Sage ERP EVision, Sage ERP Intuita, Sage Estimating, Sage Housebuilding, Sage 50 Construction and Sage 200 Construction.
Wes Simmons, general manager of Sage Construction, who will become chief executive of the new Eque2, said: “As Sage Construction, we have been successfully trading even during these challenging economic times. However, while Sage has a generic focus across industries, Sage Construction specifically targeted the construction and contracting vertical.
“This MBO therefore represents a fantastic opportunity for us to offer even more focus to the industry, and we are delighted to have completed the transaction. We have secured both continuity of management and investment in product development, and I have great confidence in the business and its people; their expertise and understanding of our customers’ needs through hundreds of combined years of contracting and accounting experience mean we are well placed for future growth.”
He added: “With the support of our investors along with the continued support of Sage and Microsoft as strategic partners, the MBO allows us to further invest in developing our portfolio of products and support services, with a continuation in unrivalled service levels to all our customers.”
Brendan Flattery, Sage’s UK and Ireland chief executive, said the deal will enable the vendor to focus on its core competencies.
“We are committed to this move as a positive step forward for both Sage and Eque2. We are dedicated to the ongoing development of Sage accounts products and will be providing Eque2 with research and development support," he said. "This means that the team at Eque2 can continue to provide existing and new customers with construction-specific accounting products and an extraordinary customer experience. The partnership is consistent with Sage’s focus on its core business of accounting, ERP, payroll and accountancy for entry through to mid-market businesses.”
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