On Tuesday, Sage Group, a U.K. based technology company, announced that they are acquiring Intacct Corporation. It is the largest ever acquisition by Sage, who will be purchasing Intacct for $850 million. The transaction will close within the next few weeks.
Going forward, Intacct will be known as Sage Intacct, and according to Sage, Intacct’s management team will stay the same and continue to be in charge “thereby ensuring continuity for customers, partners, and employees.”
Related: Intacct’s New Tools Provides Focus for Nonprofits
Strategic consolidation is a way of life in the software industry, as is true in many other industries. But, this combination is exciting because it means more innovation and more paths to efficiency and the next level. Sage and Intacct have branded the acquisition as “the combination that delivers the first and last cloud
Financial Management Solution your business will ever need”.
Some advantages that will result from this acquisition are:
- Current customers (of either companies) will now have access to additional resources and product functions as a result of the combination
- Sage will further their reach in the US market
- As pointed out in Diginomica; “Intacct gets close to top market dollar for its IP in the sense the sale price is equivalent to around 8.8x revenue, a price it could not get in today’s IPO environment”
In the press release by Sage, the CEO of Intacct, Robert Reid said “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”.
In conclusion, this acquisition is a good thing. The combination of two of the leading companies in cloud accounting and financial management software will bring innovation and efficiency. As a result, customers will have more options for leading solutions that supports their business. Thus, everyone involved ends up benefiting.
Read more about the acquisition here, and find the full press release here.