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Sage obtains Intacct, a leading cloud-based financial software company for $850 million

British ERP company Sage has announced that it has obtained Intacct, a leading cloud-based financial software company.

The Sage Group has announced that it has agreed to acquire Intacct Corporation, a leading provider of cloud Financial Management Solutions in North America. The total consideration is $850m to be paid in cash and rolled over Sage options.

San Jose, California based Intacct serves thousands of businesses in the North American scale-up and enterprise markets, both directly and through a network of partners. Intacct offers sophisticated and powerful cloud Financial Management Solutions targeted at growing businesses looking for rich financial and operational insight, process automation, seamless integration with their existing software, advanced features and a modern user experience.

Intacct has a three-year revenue CAGR in excess of 33%, with current annualised recurring revenues of $96m and revenues in the twelve months to June 2017 of $88m, over 90% of which is subscription based.

Robert Reid, Intacct’s CEO, leads an experienced management team with a demonstrated track record of scaling at pace, who will remain to run the business, thereby ensuring continuity for customers, partners and employees.

Sage management reconfirms current guidance as detailed in Sage’s Q3 trading update for the full year of at least 6% organic revenue growth, including the contribution from North American Payments through to completion of the disposal and an underlying operating margin of at least 27%. For the avoidance of doubt the underlying operating margin guidance includes any investments in Sage Intacct, Sage People and Compass.

The transaction is expected to complete within weeks, as per the customary completion conditions.

While talking about the acquisition, Stephen Kelly, CEO of Sage, said “Today we take another major step forward in delivering our strategy and we are thrilled to welcome Intacct into the Sage family. The acquisition of Intacct supports our ambitions for accelerating growth by winning new customers at scale and builds on our other cloud-first acquisitions, strengthening the Sage Business Cloud. Intacct opens up huge opportunities in the North American market, representing over half of our total addressable market.”

Robert Reid, CEO of Intacct explained, “We are excited to become part of Sage because we are relentlessly focused on the same goal – to deliver the most innovative cloud solutions for our customers. Intacct is growing rapidly in our market and we are proud to be a recognized customer satisfaction leader across Midsize, Large and Global Enterprise businesses. By combining our strengths with those of Sage, we can jointly accelerate success for our customers.”