Sage completes £97m US payroll SaaS buy

American expansion gains strength for Newcastle-based software specialist

Accounting software vendor Sage has completed its $157.8m (£96.9m) buy of US-based payroll SaaS vendor PayChoice.

The deal, announced to the markets in late September, will make the Newcastle vendor a strong contender in the US payroll software market.

"The Sage Group plc confirms it has completed the acquisition of PAI Group Inc ("PayChoice") on the terms stated in the initial announcement," according to its London Stock Exchange release.

The SMB-focused vendor aims to provide "easy-to-use, secure and efficient" business management software and services spanning accounting, payroll, ERP, CRM and payments. Globally, it operates through partners in 24 countries, with 12,700 staff.

The PayChoice buy will accelerate its move to cloud, using the US firm's SaaS platform, according to the original announcement.

Pascal Houillon, chief executive of Sage North America, said the strong management team, attractive cloud platform, and proven business model of PayChoice all appealed.

"PayChoice is an excellent business," he said.

Fourteen-year-old PayChoice is headquartered in New Jersey and has 260 employees across 16 US offices providing payroll and HR services to about 100,000 SMBs, both direct and through resellers.

Robert Digby, chief executive of PayChoice, said the shared focus on SMBs was also an attraction.

"We already share so many synergies," Digby said in the original announcement.