The Sage Group plc, the leader in accounting, financial, HR and payroll technology for small and mid-sized businesses, has announced that it has agreed to acquire a cloud native multichannel retail management system for £225m.
The acquisition of Brightpearl, in which Sage already has a 17 per cent minority stake, accelerates Sage’s strategy for growth, including scaling Sage Intacct, broadening the value proposition for mid-sized businesses and expanding Sage’s digital network.
Brightpearl provides a SaaS-based retail operating system, enabling real-time business insights and helping customers automate workflows to save time and money.
The consideration for the 83 per cent of Brightpearl that Sage does not already own is $299m (£225m), which will be funded from Sage’s existing cash and available liquidity.
For the year ending December 2021, Brightpearl is expected to generate revenues of £20m, representing growth of around 50 per cent ompared to the prior year, and to achieve operating profit around the breakeven level.
The transaction is subject to regulatory clearance under the Hart-Scott-Rodino Act in the US, and is expected to close in January 2022.
Steve Hare, CEO of Sage, commented: “Sage’s purpose is to knock down barriers so everyone can thrive. Together, Sage and Brightpearl will remove the barriers that hold back retailers and wholesalers, streamlining their systems and enabling them to focus on growth.
“I’m delighted to welcome Brightpearl, its management team and colleagues to Sage, and look forward to executing on our strategic priorities together and delivering accelerated growth.”
Derek O’Carroll, CEO of Brightpearl, commented: “We are thrilled to be joining Sage. Bringing our two teams together will combine the retail strength of Brightpearl and the scale, brand and financial expertise of Sage, enabling us to offer customers the most innovative financial and retail operating solutions so they can grow fearlessly, save time and deliver outstanding experiences.”
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