Sage purchases Intacct in its largest ever acquisition

The Sage Group has acquired Intacct, a US cloud-based financial software provider, for £654m ($850m). This purchase marks the group’s largest acquisition to date.

The move underscores software giant Sage’s intention to strengthen its position in cloud-based solutions, as well as expanding its reach in North America.

In the year ending June 2017 Intacct generated £68m ($88m) in revenue, over 90% of which was subscription based. The San Jose based software provider is expected to add approximately £20m in revenue annually for Sage, in addition to organic revenue.

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.”

Intacct’s CEO Robert Reid, who will retain his position managing the business to ensure continuity, commented on the acquisition: “We are excited to become part of Sage because we are relentlessly focussed 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 recognised 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.”

The cash transaction is expected to be completed in a few weeks, after which the company will be known as Sage Intacct.