REG - Sage Group PLC - Acquisition <Origin Href="QuoteRef">SGE.L</Origin>

SageAnnouncement

06/09/2014 18:34

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RNS Number : 8235M
Sage Group PLC
21 July 2014 
 
21 July 2014 
 
Acquisition of German payroll business from Exact transforms Sage's position
in the German payroll market 
 
The Sage Group plc ("Sage") today announces an agreement to acquire Exact
Software Deutschland GmbH ("Exact Lohn"), the German payroll business of Exact
Holding N.V., for a cash consideration of E16.25m (£12.87m). The acquisition
will be made by Sage's German subsidiary, Sage Software GmbH. 
 
This is a transformative acquisition for Sage's payroll business in Germany.
It increases payroll revenue to approximately E30m and establishes Sage as one
of the two leading players in this segment in Germany. 
 
Exact Lohn provides payroll solutions ranging from payroll software products
to full business process outsourcing ("BPO") solutions.  In 2013, Exact Lohn
reported revenue of E10.5 million.  It serves approximately 3,400 small to
medium-sized businesses in Germany, with strong representation in the
manufacturing, services and construction sectors.  Following the acquisition,
Exact Lohn will be integrated into Sage's German business. 
 
Alvaro Ramirez, Chief Executive Officer of Sage Europe said: "We are excited
about the growth opportunity that the combination of Sage and Exact Lohn
creates for our German business.  Exact Lohn strengthens our existing payroll
and HCM capability, creating a market leading position in Germany.  The
acquisition significantly increases our payroll customer base and provides
opportunity for us to drive growth through our enlarged customer base." 
 
The transaction requires approval from the German Federal Cartel Office
(Bundeskartellamt) and is expected to close in the third quarter of 2014. 
 
*All financial information is translated at £1 = Euro 1.2627. 
 
Enquiries 
 
The Sage Group plc +44(0) 191 294 3068 
 
Murdo Montgomery, Investor Relations 
 
Tulchan Communications +44(0) 20 7353 4200 
 
David Shriver 
 
Jonathan Sibun 
 
About The Sage Group plc 
 
We provide small and medium sized organisations with a range of easy-to-use,
secure and efficient business management software and services - from
accounting and payroll, to enterprise resource planning, customer relationship
management and payments.  Our customers receive continuous advice and support
through our global network of local experts to help them solve their business
problems, giving them the confidence to achieve their business ambitions. 
Formed in 1981, Sage was floated on the London Stock Exchange in 1989 and
entered the FTSE 100 in 1999. Sage has over 6 million customers and more than
12,700 employees in 24 countries covering the UK & Ireland, mainland Europe,
North America, South Africa, Australia, Asia and Brazil. For further
information please visit www.sage.com 
 
This information is provided by RNS
The company news service from the London Stock Exchange