Sage to Add Retail Management Application Offerings with Acquisition of Brightpearl

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Business application developer Sage Group has entered into a deal to acquire Brightpearl, a developer of cloud-native multi-channel retail management software, for $ 299 million, Sage said Monday.

Sage already owns a 17 percent stake in Brightpearl and, as part of the deal, Sage will acquire the remaining 83 percent. Sage will fund the acquisition, which it plans to complete in January 2022 pending regulatory approvals, using existing liquidity and available liquidity, the company said.

Sage is a leading provider of accounting, finance, human resource management, and payroll applications for small and medium-sized businesses. The company is headquartered in Newcastle upon Tyne, UK and US headquarters in Atlanta.

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The acquisition will be Sage Group’s largest since the company acquired accounting software provider Intacct in 2017 for $ 850 million.

Brightpearl, with operations in the UK and US, develops retail management software that delivers real-time business information to retailers and wholesalers and helps them automate workflows. The company is expected to report revenue of $ 27 million for calendar year 2021, up about 50% from 2020, and achieve operating profit close to breakeven.

Sage said in a statement that the combination of Brightpearl and Intacct will create a solution for retailers and wholesalers that includes financial management, inventory planning, order management, purchasing and supplier management, CRM. , execution, warehousing and logistics management.

Sage said the acquisition “accelerates Sage’s growth strategy, including scaling up Sage Intacct, expanding the value proposition for midsize businesses and expanding the digital network of Wise ”.

“Sage’s goal is to break down barriers so everyone can thrive. Together, Sage and Brightpearl will remove the barriers that hold back retailers and wholesalers, streamlining their systems and allowing them to focus on growth, ”Sage CEO Steve Hare said in a statement. “I am delighted to welcome Brightpearl, its leadership team and colleagues to Sage, and look forward to executing our strategic priorities together and accelerating our growth.

“We are delighted to join Sage,” Brightpearl CEO Derek O’Carroll said in the statement. “The combination of our two teams will combine Brightpearl’s retail strength with Sage scale, brand and financial expertise, enabling us to provide clients with the financial operations and retail solutions that are the best. more innovative so that they can develop without fear, save time and offer exceptional experiences. “


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